GDL.NS WACC - Weighted Average Cost of Capital

The WACC of Gateway Distriparks Ltd (GDL.NS) is 13.8%.

The Cost of Equity of Gateway Distriparks Ltd (GDL.NS) is 14.60%.

The Cost of Debt of Gateway Distriparks Ltd (GDL.NS) is 11.15%.

	Range	Selected
Cost of equity	13.10% - 16.10%	14.60%
Tax rate	11.60% - 15.30%	13.45%
Cost of debt	8.80% - 13.50%	11.15%
WACC	12.2% - 15.3%	13.8%

WACC

GDL.NS WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.81	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	16.10%

Tax rate	11.60%	15.30%
Debt/Equity ratio	0.2	0.2
Cost of debt	8.80%	13.50%

After-tax WACC	12.2%	15.3%


Selected WACC	13.8%

GDL.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 GDL.NS:

cost_of_equity (14.60%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.81) + 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.