GOLL4.SA
Gol Linhas Aereas Inteligentes SA
Price:  
1.27 
BRL
Volume:  
7,754,300.00
Brazil | Airlines
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GOLL4.SA WACC - Weighted Average Cost of Capital

The WACC of Gol Linhas Aereas Inteligentes SA (GOLL4.SA) is 5.5%.

The Cost of Equity of Gol Linhas Aereas Inteligentes SA (GOLL4.SA) is 17.70%.
The Cost of Debt of Gol Linhas Aereas Inteligentes SA (GOLL4.SA) is 5.55%.

Range Selected
Cost of equity 16.50% - 18.90% 17.70%
Tax rate 2.80% - 9.20% 6.00%
Cost of debt 4.10% - 7.00% 5.55%
WACC 4.3% - 6.7% 5.5%
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 0.49 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 16.50% 18.90%
Tax rate 2.80% 9.20%
Debt/Equity ratio 40.09 40.09
Cost of debt 4.10% 7.00%
After-tax WACC 4.3% 6.7%
Selected WACC 5.5%

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.