GOCLCORP.NS WACC - Weighted Average Cost of Capital
The WACC of GOCL Corp Ltd (GOCLCORP.NS) is 13.4%.
| Range | Selected | |
| Cost of equity | 15.5% - 19.5% | 17.5% |
| Tax rate | 20.0% - 26.8% | 23.4% |
| Cost of debt | 7.7% - 10.0% | 8.85% |
| WACC | 12.0% - 14.9% | 13.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.04 | 1.25 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.5% | 19.5% |
| Tax rate | 20.0% | 26.8% |
| Debt/Equity ratio | 0.6 | 0.6 |
| Cost of debt | 7.7% | 10.0% |
| After-tax WACC | 12.0% | 14.9% |
| Selected WACC | 13.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GOCLCORP.NS | GOCL Corp Ltd | 0.6 | 1.62 | 1.11 |
| 500012.BO | Andhra Petrochemicals Ltd | 0.19 | 1.42 | 1.25 |
| 506248.BO | Amines and Plasticizers Ltd | 0.1 | 1.29 | 1.2 |
| 506687.BO | Transpek Industry Ltd | 0.1 | 0.8 | 0.75 |
| APCOTEXIND.NS | Apcotex Industries Ltd | 0.09 | 0.74 | 0.69 |
| KINGFA.NS | Kingfa Science and Technology (India) Ltd | 0.01 | 0.84 | 0.83 |
| MAYURUNIQ.NS | Mayur Uniquoters Ltd | 0 | 0.63 | 0.63 |
| OCCL.NS | Oriental Carbon & Chemicals Ltd | 0.6 | 0.66 | 0.45 |
| SRHHYPOLTD.NS | Sree Rayalaseema Hi-Strength Hypo Ltd | 0.01 | 1.43 | 1.42 |
| VISHNU.NS | Vishnu Chemicals Ltd | 0.1 | 0.72 | 0.67 |
| Low | High | |
| Unlevered beta | 0.72 | 0.94 |
| Relevered beta | 1.06 | 1.37 |
| Adjusted relevered beta | 1.04 | 1.25 |
GOCLCORP.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 GOCLCORP.NS:
cost_of_equity (17.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.04) + 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.