GLC.WA WACC - Weighted Average Cost of Capital

The WACC of Global Cosmed SA (GLC.WA) is 8.4%.

The Cost of Equity of Global Cosmed SA (GLC.WA) is 9.25%.

The Cost of Debt of Global Cosmed SA (GLC.WA) is 5.50%.

	Range	Selected
Cost of equity	8.40% - 10.10%	9.25%
Tax rate	10.90% - 20.40%	15.65%
Cost of debt	4.00% - 7.00%	5.50%
WACC	7.6% - 9.3%	8.4%

WACC

GLC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.1%	5.6%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.51	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	10.10%

Tax rate	10.90%	20.40%
Debt/Equity ratio	0.21	0.21
Cost of debt	4.00%	7.00%

After-tax WACC	7.6%	9.3%


Selected WACC	8.4%

GLC.WA'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 GLC.WA:

cost_of_equity (9.25%) = risk_free_rate (5.35%) + equity_risk_premium (6.80%) * adjusted_beta (0.51) + 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.