GLOBALVECT.NS WACC - Weighted Average Cost of Capital

The WACC of Global Vectra Helicorp Ltd (GLOBALVECT.NS) is 7.7%.

The Cost of Equity of Global Vectra Helicorp Ltd (GLOBALVECT.NS) is 16.85%.

The Cost of Debt of Global Vectra Helicorp Ltd (GLOBALVECT.NS) is 5.90%.

	Range	Selected
Cost of equity	14.20% - 19.50%	16.85%
Tax rate	33.00% - 40.70%	36.85%
Cost of debt	4.00% - 7.80%	5.90%
WACC	6.2% - 9.2%	7.7%

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	0.89	1.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.20%	19.50%

Tax rate	33.00%	40.70%
Debt/Equity ratio	2.27	2.27
Cost of debt	4.00%	7.80%

After-tax WACC	6.2%	9.2%


Selected WACC	7.7%

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 (16.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.89) + 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.