540614.BO WACC - Weighted Average Cost of Capital

The WACC of G G Engineering Ltd (540614.BO) is 16.9%.

The Cost of Equity of G G Engineering Ltd (540614.BO) is 17.35%.

The Cost of Debt of G G Engineering Ltd (540614.BO) is 6.35%.

	Range	Selected
Cost of equity	14.30% - 20.40%	17.35%
Tax rate	7.20% - 18.10%	12.65%
Cost of debt	5.20% - 7.50%	6.35%
WACC	13.9% - 19.9%	16.9%

WACC

540614.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.89	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.30%	20.40%

Tax rate	7.20%	18.10%
Debt/Equity ratio	0.04	0.04
Cost of debt	5.20%	7.50%

After-tax WACC	13.9%	19.9%


Selected WACC	16.9%

540614.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 540614.BO:

cost_of_equity (17.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.89) + 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.