PATINTLOG.NS WACC - Weighted Average Cost of Capital

The WACC of Patel Integrated Logistics Ltd (PATINTLOG.NS) is 13.1%.

The Cost of Equity of Patel Integrated Logistics Ltd (PATINTLOG.NS) is 14.05%.

The Cost of Debt of Patel Integrated Logistics Ltd (PATINTLOG.NS) is 9.60%.

	Range	Selected
Cost of equity	11.80% - 16.30%	14.05%
Tax rate	4.30% - 9.80%	7.05%
Cost of debt	8.60% - 10.60%	9.60%
WACC	11.2% - 15.1%	13.1%

WACC

PATINTLOG.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.59	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	16.30%

Tax rate	4.30%	9.80%
Debt/Equity ratio	0.21	0.21
Cost of debt	8.60%	10.60%

After-tax WACC	11.2%	15.1%


Selected WACC	13.1%

PATINTLOG.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 PATINTLOG.NS:

cost_of_equity (14.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.59) + 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.