GFMH WACC - Weighted Average Cost of Capital
The WACC of Goliath Film and Media Holdings (GFMH) is 4.9%.
| Range | Selected | |
| Cost of equity | 5.4% - 6.7% | 6.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 5.2% | 4.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 6.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 5.2% |
| Selected WACC | 4.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GFMH | Goliath Film and Media Holdings | 0.92 | 3.76 | 2.25 |
| AMRU | Amaru Inc | 6360.53 | 1.62 | 0 |
| FMYR | BOMCBD Corp | 7828.93 | 0.38 | 0 |
| FUGI | Fuego Enterprises Inc | 0.3 | -0.74 | -0.6 |
| HLWD | Almost Never Films Inc | 119.7 | 0.53 | 0.01 |
| KUKE | Kuke Music Holding Ltd | 0.77 | -0.36 | -0.23 |
| MVES | Movie Studio Inc | 154.86 | -0.18 | 0 |
| SSET | StarStream Entertainment Inc | 13.7 | 1.97 | 0.18 |
| UMGP | Universal Media Group Inc | 6.48 | -0.49 | -0.08 |
| Low | High | |
| Unlevered beta | 0 | 0 |
| Relevered beta | 0 | 0 |
| Adjusted relevered beta | 0.33 | 0.33 |
GFMH'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 GFMH:
cost_of_equity (6.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.