GBLP
Global Pharmatech Inc
Price:  
0.2 
USD
Volume:  
3,990
China | Personal Products

GBLP WACC - Weighted Average Cost of Capital

The WACC of Global Pharmatech Inc (GBLP) is 5.9%.

The Cost of Equity of Global Pharmatech Inc (GBLP) is 5.9%.
The Cost of Debt of Global Pharmatech Inc (GBLP) is 7%.

RangeSelected
Cost of equity5.1% - 6.7%5.9%
Tax rate26.2% - 27.0%26.6%
Cost of debt7.0% - 7.0%7%
WACC5.2% - 6.7%5.9%
WACC

GBLP WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.280.33
Additional risk adjustments0.0%0.5%
Cost of equity5.1%6.7%
Tax rate26.2%27.0%
Debt/Equity ratio
0.030.03
Cost of debt7.0%7.0%
After-tax WACC5.2%6.7%
Selected WACC5.9%

GBLP WACC - Detailed calculations of Beta

LowHigh
Unlevered beta-0.070
Relevered beta-0.070
Adjusted relevered beta0.280.33

GBLP'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 GBLP:

cost_of_equity (5.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.28) + 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.