GTL.NS WACC - Weighted Average Cost of Capital
The WACC of GTL Ltd (GTL.NS) is 9.1%.
| Range | Selected | |
| Cost of equity | 163.5% - 304.5% | 234% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 6.4% - 11.8% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 18.85 | 31.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 163.5% | 304.5% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 44.27 | 44.27 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 6.4% | 11.8% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GTL.NS | GTL Ltd | 44.27 | 1.69 | 0.05 |
| 538891.BO | Magellanic Cloud Ltd | 0.06 | -0.81 | -0.78 |
| 538922.BO | COSYN Ltd | 0.02 | 1.27 | 1.25 |
| ADSL.NS | Allied Digital Services Ltd | 0.07 | 1.53 | 1.47 |
| GOLDTECH.NS | Goldstone Technologies Ltd | 0.06 | 1.89 | 1.82 |
| MINDTECK.NS | Mindteck (India) Ltd | 0 | 2.06 | 2.06 |
| ONWARDTEC.NS | Onward Technologies Ltd | 0.04 | 1.52 | 1.48 |
| SAKSOFT.NS | Saksoft Ltd | 0.01 | 1.64 | 1.63 |
| SILVERTUC.NS | Silver Touch Technologies Ltd | 0.01 | 0.29 | 0.28 |
| TERASOFT.NS | Tera Software Ltd | 0.1 | -0.04 | -0.04 |
| Low | High | |
| Unlevered beta | 0.86 | 1.47 |
| Relevered beta | 27.64 | 47.06 |
| Adjusted relevered beta | 18.85 | 31.86 |
GTL.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 GTL.NS:
cost_of_equity (234.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (18.85) + 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.