GILLANDERS.NS WACC - Weighted Average Cost of Capital

The WACC of Gillanders Arbuthnot & Co Ltd (GILLANDERS.NS) is 14.5%.

The Cost of Equity of Gillanders Arbuthnot & Co Ltd (GILLANDERS.NS) is 16.90%.

The Cost of Debt of Gillanders Arbuthnot & Co Ltd (GILLANDERS.NS) is 10.35%.

	Range	Selected
Cost of equity	14.60% - 19.20%	16.90%
Tax rate	6.40% - 12.80%	9.60%
Cost of debt	10.20% - 10.50%	10.35%
WACC	12.9% - 16.0%	14.5%

WACC

GILLANDERS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.93	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	19.20%

Tax rate	6.40%	12.80%
Debt/Equity ratio	0.48	0.48
Cost of debt	10.20%	10.50%

After-tax WACC	12.9%	16.0%


Selected WACC	14.5%

GILLANDERS.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 GILLANDERS.NS:

cost_of_equity (16.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.