GLRI
Glori Energy Inc
Price:  
0.00 
USD
Volume:  
6,750.00
United States | Energy Equipment & Services
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GLRI WACC - Weighted Average Cost of Capital

The WACC of Glori Energy Inc (GLRI) is 6.1%.

The Cost of Equity of Glori Energy Inc (GLRI) is 1,856.85%.
The Cost of Debt of Glori Energy Inc (GLRI) is 5.00%.

Range Selected
Cost of equity 796.90% - 2,916.80% 1,856.85%
Tax rate 0.40% - 0.60% 0.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.5% - 6.8% 6.1%
WACC

GLRI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 172.4 519.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 796.90% 2,916.80%
Tax rate 0.40% 0.60%
Debt/Equity ratio 1590.67 1590.67
Cost of debt 5.00% 5.00%
After-tax WACC 5.5% 6.8%
Selected WACC 6.1%

GLRI'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 GLRI:

cost_of_equity (1,856.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (172.4) + 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.