509546.BO WACC - Weighted Average Cost of Capital

The WACC of Graviss Hospitality Ltd (509546.BO) is 12.3%.

The Cost of Equity of Graviss Hospitality Ltd (509546.BO) is 12.55%.

The Cost of Debt of Graviss Hospitality Ltd (509546.BO) is 6.30%.

	Range	Selected
Cost of equity	10.70% - 14.40%	12.55%
Tax rate	20.20% - 22.30%	21.25%
Cost of debt	4.80% - 7.80%	6.30%
WACC	10.5% - 14.1%	12.3%

WACC

509546.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.47	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	14.40%

Tax rate	20.20%	22.30%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.80%	7.80%

After-tax WACC	10.5%	14.1%


Selected WACC	12.3%

509546.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 509546.BO:

cost_of_equity (12.55%) = 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.