GAON.TA WACC - Weighted Average Cost of Capital

The WACC of B Gaon Holdings Ltd (GAON.TA) is 5.1%.

The Cost of Equity of B Gaon Holdings Ltd (GAON.TA) is 14.50%.

The Cost of Debt of B Gaon Holdings Ltd (GAON.TA) is 5.00%.

	Range	Selected
Cost of equity	12.60% - 16.40%	14.50%
Tax rate	33.20% - 45.50%	39.35%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.0% - 5.3%	5.1%

WACC

GAON.TA WACC calculation

Category	Low	High

Long-term bond rate	3.4%	3.9%
Equity market risk premium	5.4%	6.4%
Adjusted beta	1.69	1.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	16.40%

Tax rate	33.20%	45.50%
Debt/Equity ratio	4.41	4.41
Cost of debt	5.00%	5.00%

After-tax WACC	5.0%	5.3%


Selected WACC	5.1%

GAON.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 GAON.TA:

cost_of_equity (14.50%) = risk_free_rate (3.65%) + equity_risk_premium (5.90%) * adjusted_beta (1.69) + 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.