GICL.NS WACC - Weighted Average Cost of Capital

The WACC of Globe International Carriers Ltd (GICL.NS) is 11.8%.

The Cost of Equity of Globe International Carriers Ltd (GICL.NS) is 12.10%.

The Cost of Debt of Globe International Carriers Ltd (GICL.NS) is 9.75%.

	Range	Selected
Cost of equity	10.70% - 13.50%	12.10%
Tax rate	26.60% - 27.00%	26.80%
Cost of debt	8.60% - 10.90%	9.75%
WACC	10.4% - 13.2%	11.8%

WACC

GICL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.46	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.50%

Tax rate	26.60%	27.00%
Debt/Equity ratio	0.07	0.07
Cost of debt	8.60%	10.90%

After-tax WACC	10.4%	13.2%


Selected WACC	11.8%

GICL.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 GICL.NS:

cost_of_equity (12.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.