GLOBUSSPR.NS WACC - Weighted Average Cost of Capital

The WACC of Globus Spirits Ltd (GLOBUSSPR.NS) is 13.9%.

The Cost of Equity of Globus Spirits Ltd (GLOBUSSPR.NS) is 16.15%.

The Cost of Debt of Globus Spirits Ltd (GLOBUSSPR.NS) is 10.00%.

	Range	Selected
Cost of equity	14.60% - 17.70%	16.15%
Tax rate	30.80% - 32.60%	31.70%
Cost of debt	10.00% - 10.00%	10.00%
WACC	12.7% - 15.0%	13.9%

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	0.93	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	17.70%

Tax rate	30.80%	32.60%
Debt/Equity ratio	0.32	0.32
Cost of debt	10.00%	10.00%

After-tax WACC	12.7%	15.0%


Selected WACC	13.9%

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 (16.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.