GNRS.TA WACC - Weighted Average Cost of Capital

The WACC of Generation Capital Ltd (GNRS.TA) is 6.8%.

The Cost of Equity of Generation Capital Ltd (GNRS.TA) is 10.80%.

The Cost of Debt of Generation Capital Ltd (GNRS.TA) is 5.15%.

	Range	Selected
Cost of equity	8.80% - 12.80%	10.80%
Tax rate	17.40% - 19.90%	18.65%
Cost of debt	4.00% - 6.30%	5.15%
WACC	5.5% - 8.2%	6.8%

WACC

GNRS.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.64	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	12.80%

Tax rate	17.40%	19.90%
Debt/Equity ratio	1.49	1.49
Cost of debt	4.00%	6.30%

After-tax WACC	5.5%	8.2%


Selected WACC	6.8%

GNRS.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 GNRS.TA:

cost_of_equity (10.80%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.64) + 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.