GOHO.TA WACC - Weighted Average Cost of Capital

The WACC of Golden House Ltd (GOHO.TA) is 8.3%.

The Cost of Equity of Golden House Ltd (GOHO.TA) is 8.50%.

The Cost of Debt of Golden House Ltd (GOHO.TA) is 14.40%.

	Range	Selected
Cost of equity	7.50% - 9.50%	8.50%
Tax rate	21.10% - 48.00%	34.55%
Cost of debt	4.00% - 24.80%	14.40%
WACC	5.9% - 10.8%	8.3%

WACC

GOHO.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.43	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	9.50%

Tax rate	21.10%	48.00%
Debt/Equity ratio	0.6	0.6
Cost of debt	4.00%	24.80%

After-tax WACC	5.9%	10.8%


Selected WACC	8.3%

GOHO.TA'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 GOHO.TA:

cost_of_equity (8.50%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.43) + 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.