GLOBALVECT.NS WACC - Weighted Average Cost of Capital

The WACC of Global Vectra Helicorp Ltd (GLOBALVECT.NS) is 8.4%.

The Cost of Equity of Global Vectra Helicorp Ltd (GLOBALVECT.NS) is 15.95%.

The Cost of Debt of Global Vectra Helicorp Ltd (GLOBALVECT.NS) is 5.75%.

	Range	Selected
Cost of equity	14.50% - 17.40%	15.95%
Tax rate	33.00% - 40.70%	36.85%
Cost of debt	4.00% - 7.50%	5.75%
WACC	7.3% - 9.5%	8.4%

WACC

GLOBALVECT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.92	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.50%	17.40%

Tax rate	33.00%	40.70%
Debt/Equity ratio	1.57	1.57
Cost of debt	4.00%	7.50%

After-tax WACC	7.3%	9.5%


Selected WACC	8.4%

GLOBALVECT.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 GLOBALVECT.NS:

cost_of_equity (15.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.