GOACARBON.NS WACC - Weighted Average Cost of Capital

The WACC of Goa Carbon Ltd (GOACARBON.NS) is 14.8%.

The Cost of Equity of Goa Carbon Ltd (GOACARBON.NS) is 18.45%.

The Cost of Debt of Goa Carbon Ltd (GOACARBON.NS) is 14.45%.

	Range	Selected
Cost of equity	17.10% - 19.80%	18.45%
Tax rate	16.50% - 23.60%	20.05%
Cost of debt	7.00% - 21.90%	14.45%
WACC	11.4% - 18.2%	14.8%

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	1.24	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.10%	19.80%

Tax rate	16.50%	23.60%
Debt/Equity ratio	1.02	1.02
Cost of debt	7.00%	21.90%

After-tax WACC	11.4%	18.2%


Selected WACC	14.8%

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 (18.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.24) + 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.