GIX.TA WACC - Weighted Average Cost of Capital

The WACC of Gix Internet Ltd (GIX.TA) is 8.3%.

The Cost of Equity of Gix Internet Ltd (GIX.TA) is 17.85%.

The Cost of Debt of Gix Internet Ltd (GIX.TA) is 7.45%.

	Range	Selected
Cost of equity	13.10% - 22.60%	17.85%
Tax rate	4.00% - 31.00%	17.50%
Cost of debt	7.00% - 7.90%	7.45%
WACC	7.9% - 8.7%	8.3%

WACC

GIX.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.35	2.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	22.60%

Tax rate	4.00%	31.00%
Debt/Equity ratio	4.34	4.34
Cost of debt	7.00%	7.90%

After-tax WACC	7.9%	8.7%


Selected WACC	8.3%

GIX.TA'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 GIX.TA:

cost_of_equity (17.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.35) + 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.