GTNTEX.NS
GTN Textiles Ltd
Price:  
19.5 
INR
Volume:  
4,304
India | Textiles, Apparel & Luxury Goods

GTNTEX.NS WACC - Weighted Average Cost of Capital

The WACC of GTN Textiles Ltd (GTNTEX.NS) is 8.9%.

The Cost of Equity of GTN Textiles Ltd (GTNTEX.NS) is 13.4%.
The Cost of Debt of GTN Textiles Ltd (GTNTEX.NS) is 10.5%.

RangeSelected
Cost of equity11.1% - 15.7%13.4%
Tax rate18.0% - 34.4%26.2%
Cost of debt7.0% - 14.0%10.5%
WACC7.0% - 10.8%8.9%
WACC

GTNTEX.NS WACC calculation

CategoryLowHigh
Long-term bond rate7.5%8.0%
Equity market risk premium6.9%7.9%
Adjusted beta0.510.91
Additional risk adjustments0.0%0.5%
Cost of equity11.1%15.7%
Tax rate18.0%34.4%
Debt/Equity ratio
3.193.19
Cost of debt7.0%14.0%
After-tax WACC7.0%10.8%
Selected WACC8.9%

GTNTEX.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 GTNTEX.NS:

cost_of_equity (13.40%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.51) + 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.