523277.BO WACC - Weighted Average Cost of Capital

The WACC of GV Films Ltd (523277.BO) is 15.7%.

The Cost of Equity of GV Films Ltd (523277.BO) is 15.75%.

The Cost of Debt of GV Films Ltd (523277.BO) is 16.85%.

	Range	Selected
Cost of equity	14.60% - 16.90%	15.75%
Tax rate	0.70% - 8.80%	4.75%
Cost of debt	6.80% - 26.90%	16.85%
WACC	12.8% - 18.6%	15.7%

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	0.93	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	16.90%

Tax rate	0.70%	8.80%
Debt/Equity ratio	0.29	0.29
Cost of debt	6.80%	26.90%

After-tax WACC	12.8%	18.6%


Selected WACC	15.7%

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 (15.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.