GOODLUCK.NS
Goodluck India Ltd
Price:  
1,133.30 
INR
Volume:  
114,167.00
India | Metals & Mining
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GOODLUCK.NS WACC - Weighted Average Cost of Capital

The WACC of Goodluck India Ltd (GOODLUCK.NS) is 17.1%.

The Cost of Equity of Goodluck India Ltd (GOODLUCK.NS) is 19.35%.
The Cost of Debt of Goodluck India Ltd (GOODLUCK.NS) is 10.30%.

Range Selected
Cost of equity 17.40% - 21.30% 19.35%
Tax rate 25.30% - 26.20% 25.75%
Cost of debt 8.60% - 12.00% 10.30%
WACC 15.3% - 18.9% 17.1%
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 1.26 1.44
Additional risk adjustments 0.0% 0.5%
Cost of equity 17.40% 21.30%
Tax rate 25.30% 26.20%
Debt/Equity ratio 0.23 0.23
Cost of debt 8.60% 12.00%
After-tax WACC 15.3% 18.9%
Selected WACC 17.1%

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 (19.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.26) + 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.