GME.WA WACC - Weighted Average Cost of Capital
The WACC of Gremi Media SA (GME.WA) is 8.7%.
| Range | Selected | |
| Cost of equity | 7.8% - 9.6% | 8.7% |
| Tax rate | 22.4% - 24.5% | 23.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.8% - 9.6% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.36 | 0.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 9.6% |
| Tax rate | 22.4% | 24.5% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.8% | 9.6% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GME.WA | Gremi Media SA | 0.01 | -0.14 | -0.14 |
| ATEK.AT | Attica Publications SA | 0.75 | 0.06 | 0.04 |
| BONH.L | Bonhill Group PLC | 4.27 | -1.65 | -0.39 |
| DODS.L | Dods Group PLC | 0.76 | 0.32 | 0.2 |
| GAMB.MI | Gambero Rosso SpA | 4.78 | 0.43 | 0.09 |
| IHGZT.IS | Ihlas Gazetecilik AS | 0.04 | 0.93 | 0.91 |
| IHYAY.IS | Ihlas Yayin Holding AS | 0.17 | 1.3 | 1.15 |
| PGM.WA | PMPG Polskie Media SA | 0.1 | 0.01 | 0.01 |
| SBV.SG | Schwabenverlag AG | 0.13 | 1.62 | 1.47 |
| SEIF.MI | Societa Editoriale Il Fatto SpA | 0.5 | 0.07 | 0.05 |
| Low | High | |
| Unlevered beta | 0.05 | 0.13 |
| Relevered beta | 0.04 | 0.13 |
| Adjusted relevered beta | 0.36 | 0.42 |
GME.WA'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 GME.WA:
cost_of_equity (8.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.36) + 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.