542351.BO WACC - Weighted Average Cost of Capital

The WACC of Gloster Ltd (542351.BO) is 12.5%.

The Cost of Equity of Gloster Ltd (542351.BO) is 13.10%.

The Cost of Debt of Gloster Ltd (542351.BO) is 7.80%.

	Range	Selected
Cost of equity	11.70% - 14.50%	13.10%
Tax rate	32.30% - 33.40%	32.85%
Cost of debt	7.80% - 7.80%	7.80%
WACC	11.3% - 13.8%	12.5%

WACC

542351.BO WACC calculation

Category	Low	High

Long-term bond rate	7.1%	7.6%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.56	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	14.50%

Tax rate	32.30%	33.40%
Debt/Equity ratio	0.08	0.08
Cost of debt	7.80%	7.80%

After-tax WACC	11.3%	13.8%


Selected WACC	12.5%

542351.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 542351.BO:

cost_of_equity (13.10%) = risk_free_rate (7.35%) + equity_risk_premium (8.80%) * adjusted_beta (0.56) + 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.