GLB.AX WACC - Weighted Average Cost of Capital
The WACC of Globe International Ltd (GLB.AX) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.5% | 8.2% |
| Tax rate | 29.0% - 29.5% | 29.25% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.3% - 8.9% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.56 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.5% |
| Tax rate | 29.0% | 29.5% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.3% | 8.9% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GLB.AX | Globe International Ltd | 0.15 | 0.35 | 0.32 |
| 093240.KS | Hyungji Elite Inc | 0.4 | 1.29 | 1 |
| 159580.KQ | Zero to Seven Inc | 0 | 0.66 | 0.65 |
| 213.HK | National Electronics Holdings Ltd | 14.39 | 0.16 | 0.01 |
| 306040.KQ | SJ Group Co Ltd | 1.05 | 0.35 | 0.2 |
| DOLLAR.NS | Dollar Industries Ltd | 0.15 | 0.57 | 0.51 |
| KITEX.NS | Kitex Garments Ltd | 0.14 | 0.96 | 0.87 |
| SABINA.BK | Sabina PCL | 0.06 | 0.6 | 0.58 |
| SAFARI.NS | Safari Industries (India) Ltd | 0.01 | 0.29 | 0.29 |
| WACOAL.BK | Thai Wacoal PCL | 0.03 | 0.12 | 0.12 |
| Low | High | |
| Unlevered beta | 0.31 | 0.54 |
| Relevered beta | 0.34 | 0.6 |
| Adjusted relevered beta | 0.56 | 0.73 |
GLB.AX'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 GLB.AX:
cost_of_equity (8.20%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.