GOLL4.SA WACC - Weighted Average Cost of Capital

The WACC of Gol Linhas Aereas Inteligentes SA (GOLL4.SA) is 7.1%.

The Cost of Equity of Gol Linhas Aereas Inteligentes SA (GOLL4.SA) is 16.85%.

The Cost of Debt of Gol Linhas Aereas Inteligentes SA (GOLL4.SA) is 5.55%.

	Range	Selected
Cost of equity	15.90% - 17.80%	16.85%
Tax rate	2.80% - 9.20%	6.00%
Cost of debt	4.10% - 7.00%	5.55%
WACC	6.0% - 8.2%	7.1%

WACC

GOLL4.SA WACC calculation

Category	Low	High

Long-term bond rate	11.9%	12.4%
Equity market risk premium	9.5%	10.5%
Adjusted beta	0.43	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.90%	17.80%

Tax rate	2.80%	9.20%
Debt/Equity ratio	5.07	5.07
Cost of debt	4.10%	7.00%

After-tax WACC	6.0%	8.2%


Selected WACC	7.1%

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 (16.85%) = risk_free_rate (12.15%) + equity_risk_premium (10.00%) * adjusted_beta (0.43) + 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.