SNOWMAN.NS
Snowman Logistics Ltd
Price:  
51.81 
INR
Volume:  
169,992.00
India | Air Freight & Logistics
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SNOWMAN.NS WACC - Weighted Average Cost of Capital

The WACC of Snowman Logistics Ltd (SNOWMAN.NS) is 12.5%.

The Cost of Equity of Snowman Logistics Ltd (SNOWMAN.NS) is 13.80%.
The Cost of Debt of Snowman Logistics Ltd (SNOWMAN.NS) is 12.05%.

Range Selected
Cost of equity 10.80% - 16.80% 13.80%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 8.70% - 15.40% 12.05%
WACC 9.7% - 15.3% 12.5%
WACC

SNOWMAN.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.47 0.96
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.80% 16.80%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.32 0.32
Cost of debt 8.70% 15.40%
After-tax WACC 9.7% 15.3%
Selected WACC 12.5%

SNOWMAN.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 SNOWMAN.NS:

cost_of_equity (13.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.47) + 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.