GNGR.TA WACC - Weighted Average Cost of Capital

The WACC of Ginegar Plastic Products Ltd (GNGR.TA) is 6.3%.

The Cost of Equity of Ginegar Plastic Products Ltd (GNGR.TA) is 11.85%.

The Cost of Debt of Ginegar Plastic Products Ltd (GNGR.TA) is 7.95%.

	Range	Selected
Cost of equity	8.50% - 15.20%	11.85%
Tax rate	31.90% - 42.80%	37.35%
Cost of debt	5.80% - 10.10%	7.95%
WACC	4.9% - 7.7%	6.3%

WACC

GNGR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.59	1.31

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	15.20%

Tax rate	31.90%	42.80%
Debt/Equity ratio	3.96	3.96
Cost of debt	5.80%	10.10%

After-tax WACC	4.9%	7.7%


Selected WACC	6.3%

GNGR.TA'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 GNGR.TA:

cost_of_equity (11.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.59) + 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.