GABY.CN WACC - Weighted Average Cost of Capital

The WACC of Gaby Inc (GABY.CN) is 56.2%.

The Cost of Equity of Gaby Inc (GABY.CN) is 25.70%.

The Cost of Debt of Gaby Inc (GABY.CN) is 62.20%.

	Range	Selected
Cost of equity	22.20% - 29.20%	25.70%
Tax rate	2.10% - 3.80%	2.95%
Cost of debt	7.00% - 117.40%	62.20%
WACC	8.5% - 103.9%	56.2%

WACC

GABY.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	3.73	4.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.20%	29.20%

Tax rate	2.10%	3.80%
Debt/Equity ratio	8.3	8.3
Cost of debt	7.00%	117.40%

After-tax WACC	8.5%	103.9%


Selected WACC	56.2%

GABY.CN'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 GABY.CN:

cost_of_equity (25.70%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (3.73) + 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.