513528.BO WACC - Weighted Average Cost of Capital

The WACC of Glittek Granites Ltd (513528.BO) is 10.4%.

The Cost of Equity of Glittek Granites Ltd (513528.BO) is 15.80%.

The Cost of Debt of Glittek Granites Ltd (513528.BO) is 7.25%.

	Range	Selected
Cost of equity	14.20% - 17.40%	15.80%
Tax rate	6.10% - 13.70%	9.90%
Cost of debt	7.00% - 7.50%	7.25%
WACC	9.8% - 11.0%	10.4%

WACC

513528.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.88	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.20%	17.40%

Tax rate	6.10%	13.70%
Debt/Equity ratio	1.38	1.38
Cost of debt	7.00%	7.50%

After-tax WACC	9.8%	11.0%


Selected WACC	10.4%

513528.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 513528.BO:

cost_of_equity (15.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.88) + 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.