GALLISPAT.NS WACC - Weighted Average Cost of Capital

The WACC of Gallantt Ispat Ltd (GALLISPAT.NS) is 14.9%.

The Cost of Equity of Gallantt Ispat Ltd (GALLISPAT.NS) is 16.60%.

The Cost of Debt of Gallantt Ispat Ltd (GALLISPAT.NS) is 6.70%.

	Range	Selected
Cost of equity	15.50% - 17.70%	16.60%
Tax rate	16.00% - 20.50%	18.25%
Cost of debt	4.60% - 8.80%	6.70%
WACC	13.7% - 16.1%	14.9%

WACC

GALLISPAT.NS WACC calculation

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	15.50%	17.70%

Tax rate	16.00%	20.50%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.60%	8.80%

After-tax WACC	13.7%	16.1%


Selected WACC	14.9%

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.