VRLLOG.NS WACC - Weighted Average Cost of Capital

The WACC of VRL Logistics Ltd (VRLLOG.NS) is 12.0%.

The Cost of Equity of VRL Logistics Ltd (VRLLOG.NS) is 13.50%.

The Cost of Debt of VRL Logistics Ltd (VRLLOG.NS) is 8.90%.

	Range	Selected
Cost of equity	11.90% - 15.10%	13.50%
Tax rate	24.80% - 25.90%	25.35%
Cost of debt	8.30% - 9.50%	8.90%
WACC	10.7% - 13.3%	12.0%

WACC

VRLLOG.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.10%

Tax rate	24.80%	25.90%
Debt/Equity ratio	0.28	0.28
Cost of debt	8.30%	9.50%

After-tax WACC	10.7%	13.3%


Selected WACC	12.0%

VRLLOG.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 VRLLOG.NS:

cost_of_equity (13.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.