GTPL.NS WACC - Weighted Average Cost of Capital

The WACC of GTPL Hathway Ltd (GTPL.NS) is 11.0%.

The Cost of Equity of GTPL Hathway Ltd (GTPL.NS) is 10.90%.

The Cost of Debt of GTPL Hathway Ltd (GTPL.NS) is 14.75%.

	Range	Selected
Cost of equity	9.60% - 12.20%	10.90%
Tax rate	25.40% - 26.10%	25.75%
Cost of debt	10.90% - 18.60%	14.75%
WACC	9.0% - 12.9%	11.0%

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	0.33	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.20%

Tax rate	25.40%	26.10%
Debt/Equity ratio	0.85	0.85
Cost of debt	10.90%	18.60%

After-tax WACC	9.0%	12.9%


Selected WACC	11.0%

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 (10.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.33) + 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.