NAVKARCORP.NS WACC - Weighted Average Cost of Capital
The WACC of Navkar Corporation Ltd (NAVKARCORP.NS) is 12.7%.
| Range | Selected | |
| Cost of equity | 10.6% - 16.1% | 13.35% |
| Tax rate | 25.7% - 39.9% | 32.8% |
| Cost of debt | 7.0% - 12.9% | 9.95% |
| WACC | 10.1% - 15.3% | 12.7% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.45 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.6% | 16.1% |
| Tax rate | 25.7% | 39.9% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 7.0% | 12.9% |
| After-tax WACC | 10.1% | 15.3% |
| Selected WACC | 12.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NAVKARCORP.NS | Navkar Corporation Ltd | 0.11 | 1.87 | 1.74 |
| 6117.HK | Rizhao Port Jurong Co Ltd | 0.24 | 0.18 | 0.16 |
| 6119.HK | Tian Yuan Group Holdings Ltd | 0.01 | 0.18 | 0.18 |
| ADANIPORTS.NS | Adani Ports and Special Economic Zone Ltd | 0.17 | 1.35 | 1.21 |
| GDL.NS | Gateway Distriparks Ltd | 0.2 | 1.01 | 0.89 |
| GPPL.NS | Gujarat Pipavav Port Ltd | 0.01 | 1.2 | 1.19 |
| PRKCORP.KL | Perak Corporation Bhd | 5.54 | 0.51 | 0.11 |
| SICAL.NS | Sical Logistics Ltd | 29.79 | 1.54 | 0.07 |
| SPN.NZ | South Port New Zealand Ltd | 0.19 | -0.1 | -0.09 |
| SURIA.KL | Suria Capital Holdings Bhd | 0.04 | 0.72 | 0.7 |
| Low | High | |
| Unlevered beta | 0.17 | 0.78 |
| Relevered beta | 0.18 | 0.84 |
| Adjusted relevered beta | 0.45 | 0.89 |
NAVKARCORP.NS's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for NAVKARCORP.NS:
cost_of_equity (13.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.