523277.BO WACC - Weighted Average Cost of Capital

The WACC of GV Films Ltd (523277.BO) is 11.5%.

The Cost of Equity of GV Films Ltd (523277.BO) is 12.85%.

The Cost of Debt of GV Films Ltd (523277.BO) is 5.50%.

	Range	Selected
Cost of equity	11.60% - 14.10%	12.85%
Tax rate	12.90% - 40.60%	26.75%
Cost of debt	4.00% - 7.00%	5.50%
WACC	10.5% - 12.6%	11.5%

WACC

523277.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.58	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	14.10%

Tax rate	12.90%	40.60%
Debt/Equity ratio	0.17	0.17
Cost of debt	4.00%	7.00%

After-tax WACC	10.5%	12.6%


Selected WACC	11.5%

523277.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 523277.BO:

cost_of_equity (12.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.58) + 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.