GLOBUSSPR.NS
Globus Spirits Ltd
Price:  
1,260.85 
INR
Volume:  
379,516.00
India | Beverages
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GLOBUSSPR.NS WACC - Weighted Average Cost of Capital

The WACC of Globus Spirits Ltd (GLOBUSSPR.NS) is 14.9%.

The Cost of Equity of Globus Spirits Ltd (GLOBUSSPR.NS) is 16.35%.
The Cost of Debt of Globus Spirits Ltd (GLOBUSSPR.NS) is 12.10%.

Range Selected
Cost of equity 14.30% - 18.40% 16.35%
Tax rate 30.80% - 32.60% 31.70%
Cost of debt 12.10% - 12.10% 12.10%
WACC 13.2% - 16.6% 14.9%
WACC

GLOBUSSPR.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 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.30% 18.40%
Tax rate 30.80% 32.60%
Debt/Equity ratio 0.21 0.21
Cost of debt 12.10% 12.10%
After-tax WACC 13.2% 16.6%
Selected WACC 14.9%

GLOBUSSPR.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 GLOBUSSPR.NS:

cost_of_equity (16.35%) = 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.