GOKUL.NS WACC - Weighted Average Cost of Capital

The WACC of Gokul Refoils and Solvent Ltd (GOKUL.NS) is 11.6%.

The Cost of Equity of Gokul Refoils and Solvent Ltd (GOKUL.NS) is 14.55%.

The Cost of Debt of Gokul Refoils and Solvent Ltd (GOKUL.NS) is 9.95%.

	Range	Selected
Cost of equity	13.00% - 16.10%	14.55%
Tax rate	24.80% - 26.30%	25.55%
Cost of debt	7.80% - 12.10%	9.95%
WACC	10.0% - 13.1%	11.6%

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	0.74	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.00%	16.10%

Tax rate	24.80%	26.30%
Debt/Equity ratio	0.71	0.71
Cost of debt	7.80%	12.10%

After-tax WACC	10.0%	13.1%


Selected WACC	11.6%

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 (14.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.74) + 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.