GTPL.NS
GTPL Hathway Ltd
Price:  
119.12 
INR
Volume:  
65,182.00
India | Media
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GTPL.NS WACC - Weighted Average Cost of Capital

The WACC of GTPL Hathway Ltd (GTPL.NS) is 13.9%.

The Cost of Equity of GTPL Hathway Ltd (GTPL.NS) is 15.25%.
The Cost of Debt of GTPL Hathway Ltd (GTPL.NS) is 10.35%.

Range Selected
Cost of equity 13.50% - 17.00% 15.25%
Tax rate 25.40% - 26.10% 25.75%
Cost of debt 9.10% - 11.60% 10.35%
WACC 12.3% - 15.5% 13.9%
WACC

GTPL.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.8 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.50% 17.00%
Tax rate 25.40% 26.10%
Debt/Equity ratio 0.22 0.22
Cost of debt 9.10% 11.60%
After-tax WACC 12.3% 15.5%
Selected WACC 13.9%

GTPL.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 GTPL.NS:

cost_of_equity (15.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.