GAGR.TA WACC - Weighted Average Cost of Capital

The WACC of Gaon Group Ltd (GAGR.TA) is 10.5%.

The Cost of Equity of Gaon Group Ltd (GAGR.TA) is 10.60%.

The Cost of Debt of Gaon Group Ltd (GAGR.TA) is 12.50%.

	Range	Selected
Cost of equity	8.60% - 12.60%	10.60%
Tax rate	12.60% - 19.60%	16.10%
Cost of debt	11.70% - 13.30%	12.50%
WACC	9.2% - 11.9%	10.5%

WACC

GAGR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.62	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	12.60%

Tax rate	12.60%	19.60%
Debt/Equity ratio	0.58	0.58
Cost of debt	11.70%	13.30%

After-tax WACC	9.2%	11.9%


Selected WACC	10.5%

GAGR.TA'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 GAGR.TA:

cost_of_equity (10.60%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * 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.