GALLISPAT.NS WACC - Weighted Average Cost of Capital
The WACC of Gallantt Ispat Ltd (GALLISPAT.NS) is 14.9%.
| Range | Selected | |
| Cost of equity | 15.5% - 17.7% | 16.6% |
| Tax rate | 16.0% - 20.5% | 18.25% |
| Cost of debt | 4.6% - 8.8% | 6.7% |
| WACC | 13.7% - 16.1% | 14.9% |
| Category | Low | High |
| Long-term bond rate | 7.5% | 8.0% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 1.15 | 1.16 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.5% | 17.7% |
| Tax rate | 16.0% | 20.5% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 4.6% | 8.8% |
| After-tax WACC | 13.7% | 16.1% |
| Selected WACC | 14.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GALLISPAT.NS | Gallantt Ispat Ltd | 0.18 | 1.09 | 0.96 |
| 539018.BO | Beekay Steel Industries Ltd | 0.24 | 1.06 | 0.9 |
| GALLANTT.NS | Gallantt Metal Ltd | 0.04 | 1.37 | 1.32 |
| HITECH.NS | Hi-Tech Pipes Ltd | 0.21 | 1.67 | 1.42 |
| KAMDHENU.NS | Kamdhenu Ltd | 0 | 1.45 | 1.45 |
| KSL.NS | Kalyani Steels Ltd | 0.17 | 1.14 | 1.01 |
| MMFL.NS | MM Forgings Ltd | 0.54 | 1.29 | 0.9 |
| RKFORGE.NS | Ramkrishna Forgings Ltd | 0.11 | 1.52 | 1.4 |
| STEELXIND.NS | Steel Exchange India Ltd | 0.39 | 1.37 | 1.04 |
| VSSL.NS | Vardhman Special Steels Ltd | 0.06 | 1.17 | 1.12 |
| Low | High | |
| Unlevered beta | 1.03 | 1.2 |
| Relevered beta | 1.22 | 1.24 |
| Adjusted relevered beta | 1.15 | 1.16 |
GALLISPAT.NS'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 GALLISPAT.NS:
cost_of_equity (16.60%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (1.15) + 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.