GPH.L WACC - Weighted Average Cost of Capital

The WACC of Global Ports Holding PLC (GPH.L) is 9.4%.

The Cost of Equity of Global Ports Holding PLC (GPH.L) is 7.45%.

The Cost of Debt of Global Ports Holding PLC (GPH.L) is 11.25%.

	Range	Selected
Cost of equity	6.50% - 8.40%	7.45%
Tax rate	7.30% - 11.30%	9.30%
Cost of debt	6.70% - 15.80%	11.25%
WACC	6.3% - 12.5%	9.4%

WACC

GPH.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.43	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	8.40%

Tax rate	7.30%	11.30%
Debt/Equity ratio	2.79	2.79
Cost of debt	6.70%	15.80%

After-tax WACC	6.3%	12.5%


Selected WACC	9.4%

GPH.L'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 GPH.L:

cost_of_equity (7.45%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * 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.