GOGL
Golden Ocean Group Ltd
Price:  
7.70 
USD
Volume:  
5,642,745.00
Bermuda | Marine
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GOGL WACC - Weighted Average Cost of Capital

The WACC of Golden Ocean Group Ltd (GOGL) is 8.3%.

The Cost of Equity of Golden Ocean Group Ltd (GOGL) is 9.45%.
The Cost of Debt of Golden Ocean Group Ltd (GOGL) is 7.00%.

Range Selected
Cost of equity 8.20% - 10.70% 9.45%
Tax rate 0.10% - 0.10% 0.10%
Cost of debt 4.90% - 9.10% 7.00%
WACC 6.6% - 9.9% 8.3%
WACC

GOGL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.94 1.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.70%
Tax rate 0.10% 0.10%
Debt/Equity ratio 0.89 0.89
Cost of debt 4.90% 9.10%
After-tax WACC 6.6% 9.9%
Selected WACC 8.3%

GOGL'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 GOGL:

cost_of_equity (9.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.94) + 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.