GOACARBON.NS WACC - Weighted Average Cost of Capital

The WACC of Goa Carbon Ltd (GOACARBON.NS) is 36.6%.

The Cost of Equity of Goa Carbon Ltd (GOACARBON.NS) is 15.65%.

The Cost of Debt of Goa Carbon Ltd (GOACARBON.NS) is 84.10%.

	Range	Selected
Cost of equity	12.30% - 19.00%	15.65%
Tax rate	16.50% - 23.60%	20.05%
Cost of debt	7.00% - 161.20%	84.10%
WACC	9.5% - 63.6%	36.6%

WACC

GOACARBON.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.65	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	19.00%

Tax rate	16.50%	23.60%
Debt/Equity ratio	0.75	0.75
Cost of debt	7.00%	161.20%

After-tax WACC	9.5%	63.6%


Selected WACC	36.6%

GOACARBON.NS'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 GOACARBON.NS:

cost_of_equity (15.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.65) + 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.