GOLL4.SA WACC - Weighted Average Cost of Capital
The WACC of Gol Linhas Aereas Inteligentes SA (GOLL4.SA) is 5.5%.
| Range | Selected | |
| Cost of equity | 16.5% - 18.9% | 17.7% |
| Tax rate | 2.8% - 9.2% | 6% |
| Cost of debt | 4.1% - 7.0% | 5.55% |
| WACC | 4.3% - 6.7% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 11.9% | 12.4% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.49 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.5% | 18.9% |
| Tax rate | 2.8% | 9.2% |
| Debt/Equity ratio | 40.09 | 40.09 |
| Cost of debt | 4.1% | 7.0% |
| After-tax WACC | 4.3% | 6.7% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GOLL4.SA | Gol Linhas Aereas Inteligentes SA | 60.03 | 0.61 | 0.01 |
| Low | High | |
| Unlevered beta | 0.01 | 0.01 |
| Relevered beta | 0.24 | 0.36 |
| Adjusted relevered beta | 0.49 | 0.57 |
GOLL4.SA'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 GOLL4.SA:
cost_of_equity (17.70%) = risk_free_rate (12.15%) + equity_risk_premium (10.00%) * adjusted_beta (0.49) + 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.