GNG.WA WACC - Weighted Average Cost of Capital

The WACC of G Energy SA (GNG.WA) is 9.0%.

The Cost of Equity of G Energy SA (GNG.WA) is 10.25%.

The Cost of Debt of G Energy SA (GNG.WA) is 5.90%.

	Range	Selected
Cost of equity	9.10% - 11.40%	10.25%
Tax rate	8.60% - 17.30%	12.95%
Cost of debt	5.40% - 6.40%	5.90%
WACC	8.1% - 10.0%	9.0%

WACC

GNG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.57	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	11.40%

Tax rate	8.60%	17.30%
Debt/Equity ratio	0.31	0.31
Cost of debt	5.40%	6.40%

After-tax WACC	8.1%	10.0%


Selected WACC	9.0%

GNG.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 GNG.WA:

cost_of_equity (10.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.57) + 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.