539228.BO WACC - Weighted Average Cost of Capital
The WACC of Gala Global Products Ltd (539228.BO) is 9.9%.
| Range | Selected | |
| Cost of equity | 12.0% - 17.7% | 14.85% |
| Tax rate | 24.1% - 26.4% | 25.25% |
| Cost of debt | 7.0% - 10.4% | 8.7% |
| WACC | 8.1% - 11.8% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.62 | 1.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.0% | 17.7% |
| Tax rate | 24.1% | 26.4% |
| Debt/Equity ratio | 1.44 | 1.44 |
| Cost of debt | 7.0% | 10.4% |
| After-tax WACC | 8.1% | 11.8% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 539228.BO | Gala Global Products Ltd | 1.44 | 0.7 | 0.34 |
| 1481.HK | Smart Globe Holdings Ltd | 0.02 | -0.37 | -0.36 |
| 1631.HK | REF Holdings Ltd | 0.28 | 0.96 | 0.79 |
| 1841.HK | A.Plus Group Holdings Ltd | 0.07 | 0.34 | 0.32 |
| 534190.BO | Olympic Cards Ltd | 5.18 | 0.15 | 0.03 |
| 8416.HK | HM International Holdings Ltd | 0.49 | 0.02 | 0.01 |
| 8450.HK | EDICO Holdings Ltd | 0.02 | -0.87 | -0.85 |
| CFM.KL | Computer Forms (Malaysia) Bhd | 0.18 | 1.06 | 0.94 |
| REPRO.NS | Repro India Ltd | 0.06 | 1.69 | 1.61 |
| SLP.BK | Salee Printing PCL | 0.12 | 0.88 | 0.8 |
| Low | High | |
| Unlevered beta | 0.21 | 0.52 |
| Relevered beta | 0.43 | 1.07 |
| Adjusted relevered beta | 0.62 | 1.05 |
539228.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 539228.BO:
cost_of_equity (14.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.62) + 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.