GUF.V WACC - Weighted Average Cost of Capital

The WACC of Gulf & Pacific Equities Corp (GUF.V) is 6.8%.

The Cost of Equity of Gulf & Pacific Equities Corp (GUF.V) is 8.15%.

The Cost of Debt of Gulf & Pacific Equities Corp (GUF.V) is 6.95%.

	Range	Selected
Cost of equity	6.20% - 10.10%	8.15%
Tax rate	7.60% - 9.80%	8.70%
Cost of debt	4.80% - 9.10%	6.95%
WACC	4.9% - 8.7%	6.8%

WACC

GUF.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.45	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	10.10%

Tax rate	7.60%	9.80%
Debt/Equity ratio	2.59	2.59
Cost of debt	4.80%	9.10%

After-tax WACC	4.9%	8.7%


Selected WACC	6.8%

GUF.V'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 GUF.V:

cost_of_equity (8.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * 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.