GOODLUCK.NS WACC - Weighted Average Cost of Capital

The WACC of Goodluck India Ltd (GOODLUCK.NS) is 16.2%.

The Cost of Equity of Goodluck India Ltd (GOODLUCK.NS) is 18.55%.

The Cost of Debt of Goodluck India Ltd (GOODLUCK.NS) is 10.00%.

	Range	Selected
Cost of equity	17.20% - 19.90%	18.55%
Tax rate	25.30% - 26.20%	25.75%
Cost of debt	8.60% - 11.40%	10.00%
WACC	14.9% - 17.5%	16.2%

WACC

GOODLUCK.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.24	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.20%	19.90%

Tax rate	25.30%	26.20%
Debt/Equity ratio	0.26	0.26
Cost of debt	8.60%	11.40%

After-tax WACC	14.9%	17.5%


Selected WACC	16.2%

GOODLUCK.NS'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 GOODLUCK.NS:

cost_of_equity (18.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.24) + 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.