GBGLOBAL.NS WACC - Weighted Average Cost of Capital

The WACC of GB Global Ltd (GBGLOBAL.NS) is 9.6%.

The Cost of Equity of GB Global Ltd (GBGLOBAL.NS) is 80.75%.

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

	Range	Selected
Cost of equity	66.40% - 95.10%	80.75%
Tax rate	1.10% - 2.50%	1.80%
Cost of debt	4.00% - 7.50%	5.75%
WACC	7.3% - 12.0%	9.6%

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	7.17	9.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	66.40%	95.10%

Tax rate	1.10%	2.50%
Debt/Equity ratio	17.74	17.74
Cost of debt	4.00%	7.50%

After-tax WACC	7.3%	12.0%


Selected WACC	9.6%

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 (80.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (7.17) + 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.