GSC.L
GS Chain PLC
Price:  
0.70 
GBP
Volume:  
2,550,563.00
United Kingdom | N/A
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GSC.L WACC - Weighted Average Cost of Capital

The WACC of GS Chain PLC (GSC.L) is 3.8%.

The Cost of Equity of GS Chain PLC (GSC.L) is 3.65%.
The Cost of Debt of GS Chain PLC (GSC.L) is 5.00%.

Range Selected
Cost of equity 3.30% - 4.00% 3.65%
Tax rate 19.00% - 19.00% 19.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.6% - 4.0% 3.8%
WACC

GSC.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta -0.36 -0.36
Additional risk adjustments 1.5% 2.0%
Cost of equity 3.30% 4.00%
Tax rate 19.00% 19.00%
Debt/Equity ratio 0.55 0.55
Cost of debt 5.00% 5.00%
After-tax WACC 3.6% 4.0%
Selected WACC 3.8%

GSC.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 GSC.L:

cost_of_equity (3.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (-0.36) + risk_adjustments (1.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.