GBGLOBAL.NS WACC - Weighted Average Cost of Capital

The WACC of GB Global Ltd (GBGLOBAL.NS) is 9.4%.

The Cost of Equity of GB Global Ltd (GBGLOBAL.NS) is 100.90%.

The Cost of Debt of GB Global Ltd (GBGLOBAL.NS) is 5.75%.

	Range	Selected
Cost of equity	79.70% - 122.10%	100.90%
Tax rate	1.10% - 9.00%	5.05%
Cost of debt	4.00% - 7.50%	5.75%
WACC	7.2% - 11.7%	9.4%

WACC

GBGLOBAL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	8.76	12.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	79.70%	122.10%

Tax rate	1.10%	9.00%
Debt/Equity ratio	22.47	22.47
Cost of debt	4.00%	7.50%

After-tax WACC	7.2%	11.7%


Selected WACC	9.4%

GBGLOBAL.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 GBGLOBAL.NS:

cost_of_equity (100.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (8.76) + 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.