GLRI
Glori Energy Inc
Price:  
0.00 
USD
Volume:  
10,530.00
United States | Energy Equipment & Services
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GLRI WACC - Weighted Average Cost of Capital

The WACC of Glori Energy Inc (GLRI) is 5.6%.

The Cost of Equity of Glori Energy Inc (GLRI) is 1,903.95%.
The Cost of Debt of Glori Energy Inc (GLRI) is 5.00%.

Range Selected
Cost of equity 410.00% - 3,397.90% 1,903.95%
Tax rate 0.40% - 0.60% 0.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.1% - 6.0% 5.6%
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 88.28 605.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 410.00% 3,397.90%
Tax rate 0.40% 0.60%
Debt/Equity ratio 3181.34 3181.34
Cost of debt 5.00% 5.00%
After-tax WACC 5.1% 6.0%
Selected WACC 5.6%

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 (1,903.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (88.28) + 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.