GOCLCORP.NS WACC - Weighted Average Cost of Capital

The WACC of GOCL Corp Ltd (GOCLCORP.NS) is 13.6%.

The Cost of Equity of GOCL Corp Ltd (GOCLCORP.NS) is 18.00%.

The Cost of Debt of GOCL Corp Ltd (GOCLCORP.NS) is 8.85%.

	Range	Selected
Cost of equity	15.70% - 20.30%	18.00%
Tax rate	20.00% - 26.80%	23.40%
Cost of debt	7.70% - 10.00%	8.85%
WACC	12.0% - 15.2%	13.6%

WACC

GOCLCORP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.06	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.70%	20.30%

Tax rate	20.00%	26.80%
Debt/Equity ratio	0.64	0.64
Cost of debt	7.70%	10.00%

After-tax WACC	12.0%	15.2%


Selected WACC	13.6%

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 (18.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.06) + 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.