GOKUL.NS WACC - Weighted Average Cost of Capital

The WACC of Gokul Refoils and Solvent Ltd (GOKUL.NS) is 11.4%.

The Cost of Equity of Gokul Refoils and Solvent Ltd (GOKUL.NS) is 13.75%.

The Cost of Debt of Gokul Refoils and Solvent Ltd (GOKUL.NS) is 11.40%.

	Range	Selected
Cost of equity	11.80% - 15.70%	13.75%
Tax rate	24.90% - 26.50%	25.70%
Cost of debt	7.40% - 15.40%	11.40%
WACC	9.0% - 13.7%	11.4%

WACC

GOKUL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.6	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	15.70%

Tax rate	24.90%	26.50%
Debt/Equity ratio	0.79	0.79
Cost of debt	7.40%	15.40%

After-tax WACC	9.0%	13.7%


Selected WACC	11.4%

GOKUL.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 GOKUL.NS:

cost_of_equity (13.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.