542918.BO WACC - Weighted Average Cost of Capital

The WACC of Gian Life Care Ltd (542918.BO) is 14.5%.

The Cost of Equity of Gian Life Care Ltd (542918.BO) is 15.70%.

The Cost of Debt of Gian Life Care Ltd (542918.BO) is 14.30%.

	Range	Selected
Cost of equity	13.80% - 17.60%	15.70%
Tax rate	27.40% - 27.70%	27.55%
Cost of debt	7.60% - 21.00%	14.30%
WACC	11.9% - 17.1%	14.5%

WACC

542918.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	17.60%

Tax rate	27.40%	27.70%
Debt/Equity ratio	0.29	0.29
Cost of debt	7.60%	21.00%

After-tax WACC	11.9%	17.1%


Selected WACC	14.5%

542918.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 542918.BO:

cost_of_equity (15.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.