GAL.WA WACC - Weighted Average Cost of Capital
The WACC of Galvo SA (GAL.WA) is 9.4%.
| Range | Selected | |
| Cost of equity | 8.2% - 10.1% | 9.15% |
| Tax rate | 2.0% - 5.0% | 3.5% |
| Cost of debt | 7.0% - 13.6% | 10.3% |
| WACC | 7.7% - 11.1% | 9.4% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.43 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 10.1% |
| Tax rate | 2.0% | 5.0% |
| Debt/Equity ratio | 0.54 | 0.54 |
| Cost of debt | 7.0% | 13.6% |
| After-tax WACC | 7.7% | 11.1% |
| Selected WACC | 9.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GAL.WA | Galvo SA | 0.54 | 0.01 | 0.01 |
| ERA.V | Elcora Advanced Materials Corp | 0.53 | -1.88 | -1.24 |
| ARCT.ST | Arctic Minerals AB | 0.03 | -1.16 | -1.13 |
| BOL.ST | Boliden AB | 0.19 | 1.36 | 1.14 |
| BOTX.ST | Botnia Exploration Holding AB (publ) | 0.01 | 0.16 | 0.16 |
| BRS.WA | Boryszew SA | 0.65 | 0.26 | 0.16 |
| CAMB.BR | Campine NV | 0.05 | 0.75 | 0.72 |
| LEBEK.AT | N Leventeris SA | 0.96 | 0.18 | 0.09 |
| VIO.AT | Viohalco SA | 1.37 | 1.22 | 0.52 |
| WRES.L | W Resources PLC | 17.51 | 1.72 | 0.09 |
| Low | High | |
| Unlevered beta | 0.09 | 0.16 |
| Relevered beta | 0.15 | 0.24 |
| Adjusted relevered beta | 0.43 | 0.49 |
GAL.WA'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 GAL.WA:
cost_of_equity (9.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.43) + 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.