GOLF.TA WACC - Weighted Average Cost of Capital

The WACC of Golf & Co Group Ltd (GOLF.TA) is 8.4%.

The Cost of Equity of Golf & Co Group Ltd (GOLF.TA) is 14.35%.

The Cost of Debt of Golf & Co Group Ltd (GOLF.TA) is 5.30%.

	Range	Selected
Cost of equity	11.80% - 16.90%	14.35%
Tax rate	8.70% - 12.80%	10.75%
Cost of debt	4.00% - 6.60%	5.30%
WACC	6.8% - 10.0%	8.4%

WACC

GOLF.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.14	1.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	16.90%

Tax rate	8.70%	12.80%
Debt/Equity ratio	1.59	1.59
Cost of debt	4.00%	6.60%

After-tax WACC	6.8%	10.0%


Selected WACC	8.4%

GOLF.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 GOLF.TA:

cost_of_equity (14.35%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.14) + 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.