SVLL.NS WACC - Weighted Average Cost of Capital

The WACC of Shree Vasu Logistics Ltd (SVLL.NS) is 11.2%.

The Cost of Equity of Shree Vasu Logistics Ltd (SVLL.NS) is 12.20%.

The Cost of Debt of Shree Vasu Logistics Ltd (SVLL.NS) is 8.45%.

	Range	Selected
Cost of equity	9.90% - 14.50%	12.20%
Tax rate	18.90% - 22.80%	20.85%
Cost of debt	7.00% - 9.90%	8.45%
WACC	9.1% - 13.2%	11.2%

WACC

SVLL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.36	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	14.50%

Tax rate	18.90%	22.80%
Debt/Equity ratio	0.23	0.23
Cost of debt	7.00%	9.90%

After-tax WACC	9.1%	13.2%


Selected WACC	11.2%

SVLL.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 SVLL.NS:

cost_of_equity (12.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.36) + 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.