GEECEE.NS WACC - Weighted Average Cost of Capital

The WACC of GeeCee Ventures Ltd (GEECEE.NS) is 11.1%.

The Cost of Equity of GeeCee Ventures Ltd (GEECEE.NS) is 16.35%.

The Cost of Debt of GeeCee Ventures Ltd (GEECEE.NS) is 7.50%.

	Range	Selected
Cost of equity	13.90% - 18.80%	16.35%
Tax rate	19.30% - 21.40%	20.35%
Cost of debt	7.50% - 7.50%	7.50%
WACC	9.9% - 12.3%	11.1%

WACC

GEECEE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.84	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	18.80%

Tax rate	19.30%	21.40%
Debt/Equity ratio	1	1
Cost of debt	7.50%	7.50%

After-tax WACC	9.9%	12.3%


Selected WACC	11.1%

GEECEE.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 GEECEE.NS:

cost_of_equity (16.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.