GOLL4.SA WACC - Weighted Average Cost of Capital

The WACC of Gol Linhas Aereas Inteligentes SA (GOLL4.SA) is 14.7%.

The Cost of Equity of Gol Linhas Aereas Inteligentes SA (GOLL4.SA) is 20.35%.

The Cost of Debt of Gol Linhas Aereas Inteligentes SA (GOLL4.SA) is 18.35%.

	Range	Selected
Cost of equity	19.30% - 21.40%	20.35%
Tax rate	2.80% - 23.30%	13.05%
Cost of debt	4.80% - 31.90%	18.35%
WACC	5.0% - 24.4%	14.7%

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	0.78	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.30%	21.40%

Tax rate	2.80%	23.30%
Debt/Equity ratio	44.98	44.98
Cost of debt	4.80%	31.90%

After-tax WACC	5.0%	24.4%


Selected WACC	14.7%

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 (20.35%) = risk_free_rate (12.15%) + equity_risk_premium (10.00%) * adjusted_beta (0.78) + 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.