GOLDENTOBC.NS WACC - Weighted Average Cost of Capital
The WACC of Golden Tobacco Ltd (GOLDENTOBC.NS) is 14.3%.
| Range | Selected | |
| Cost of equity | 12.5% - 16.8% | 14.65% |
| Tax rate | 1.4% - 12.6% | 7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 12.3% - 16.4% | 14.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.68 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.5% | 16.8% |
| Tax rate | 1.4% | 12.6% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 12.3% | 16.4% |
| Selected WACC | 14.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GOLDENTOBC.NS | Golden Tobacco Ltd | 0.03 | 0.15 | 0.14 |
| 526723.BO | NTC Industries Ltd | 0.17 | 1.26 | 1.08 |
| 603429.SS | Anhui Genuine New Materials Co Ltd | 0.03 | 1.43 | 1.39 |
| BAT.KL | British American Tobacco (Malaysia) Bhd | 0.31 | 0.6 | 0.46 |
| CLC.VN | Cat Loi JSC | 0.49 | 0.46 | 0.31 |
| GODFRYPHLP.NS | Godfrey Phillips India Ltd | 0.01 | 1.4 | 1.39 |
| ITC.NS | ITC Ltd | 0 | 0.53 | 0.53 |
| ITIC.JK | Indonesian Tobacco Tbk PT | 0.73 | 0.41 | 0.24 |
| RMBA.JK | Bentoel International Investama Tbk PT | 0 | 0.87 | 0.87 |
| WIIM.JK | Wismilak Inti Makmur Tbk PT | 0.24 | 1.2 | 0.97 |
| Low | High | |
| Unlevered beta | 0.5 | 0.91 |
| Relevered beta | 0.52 | 0.94 |
| Adjusted relevered beta | 0.68 | 0.96 |
GOLDENTOBC.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 GOLDENTOBC.NS:
cost_of_equity (14.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.