GCL.L WACC - Weighted Average Cost of Capital

The WACC of Geiger Counter Ltd (GCL.L) is 6.7%.

The Cost of Equity of Geiger Counter Ltd (GCL.L) is 6.85%.

The Cost of Debt of Geiger Counter Ltd (GCL.L) is 4.90%.

	Range	Selected
Cost of equity	6.10% - 7.60%	6.85%
Tax rate	-% - 0.10%	0.05%
Cost of debt	4.60% - 5.20%	4.90%
WACC	6.0% - 7.4%	6.7%

WACC

GCL.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.36	0.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	7.60%

Tax rate	-%	0.10%
Debt/Equity ratio	0.12	0.12
Cost of debt	4.60%	5.20%

After-tax WACC	6.0%	7.4%


Selected WACC	6.7%

GCL.L'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 GCL.L:

cost_of_equity (6.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.