GCL.MI WACC - Weighted Average Cost of Capital

The WACC of Guala Closures SpA (GCL.MI) is 12.1%.

The Cost of Equity of Guala Closures SpA (GCL.MI) is 9.90%.

The Cost of Debt of Guala Closures SpA (GCL.MI) is 19.90%.

	Range	Selected
Cost of equity	8.40% - 11.40%	9.90%
Tax rate	16.80% - 29.30%	23.05%
Cost of debt	9.80% - 30.00%	19.90%
WACC	8.3% - 15.9%	12.1%

WACC

GCL.MI WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.65	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	11.40%

Tax rate	16.80%	29.30%
Debt/Equity ratio	0.85	0.85
Cost of debt	9.80%	30.00%

After-tax WACC	8.3%	15.9%


Selected WACC	12.1%

GCL.MI'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.MI:

cost_of_equity (9.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.40%) * adjusted_beta (0.65) + 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.