GTC.WA WACC - Weighted Average Cost of Capital

The WACC of Globe Trade Centre SA (GTC.WA) is 6.4%.

The Cost of Equity of Globe Trade Centre SA (GTC.WA) is 9.25%.

The Cost of Debt of Globe Trade Centre SA (GTC.WA) is 6.55%.

	Range	Selected
Cost of equity	8.30% - 10.20%	9.25%
Tax rate	14.20% - 18.40%	16.30%
Cost of debt	4.00% - 9.10%	6.55%
WACC	4.7% - 8.1%	6.4%

WACC

GTC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.45	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	10.20%

Tax rate	14.20%	18.40%
Debt/Equity ratio	2.97	2.97
Cost of debt	4.00%	9.10%

After-tax WACC	4.7%	8.1%


Selected WACC	6.4%

GTC.WA'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 GTC.WA:

cost_of_equity (9.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.45) + 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.