500166.BO WACC - Weighted Average Cost of Capital

The WACC of Goodricke Group Ltd (500166.BO) is 11.6%.

The Cost of Equity of Goodricke Group Ltd (500166.BO) is 13.70%.

The Cost of Debt of Goodricke Group Ltd (500166.BO) is 8.25%.

	Range	Selected
Cost of equity	12.60% - 14.80%	13.70%
Tax rate	27.40% - 34.20%	30.80%
Cost of debt	7.00% - 9.50%	8.25%
WACC	10.7% - 12.6%	11.6%

WACC

500166.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.69	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	14.80%

Tax rate	27.40%	34.20%
Debt/Equity ratio	0.34	0.34
Cost of debt	7.00%	9.50%

After-tax WACC	10.7%	12.6%


Selected WACC	11.6%

500166.BO'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 500166.BO:

cost_of_equity (13.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.69) + 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.