GUJGASLTD.NS
Gujarat Gas Ltd
Price:  
470.70 
INR
Volume:  
2,222,653.00
India | Gas Utilities
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GUJGASLTD.NS WACC - Weighted Average Cost of Capital

The WACC of Gujarat Gas Ltd (GUJGASLTD.NS) is 14.3%.

The Cost of Equity of Gujarat Gas Ltd (GUJGASLTD.NS) is 14.30%.
The Cost of Debt of Gujarat Gas Ltd (GUJGASLTD.NS) is 7.55%.

Range Selected
Cost of equity 12.50% - 16.10% 14.30%
Tax rate 25.10% - 25.30% 25.20%
Cost of debt 7.50% - 7.60% 7.55%
WACC 12.5% - 16.0% 14.3%
WACC

GUJGASLTD.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.68 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.50% 16.10%
Tax rate 25.10% 25.30%
Debt/Equity ratio 0 0
Cost of debt 7.50% 7.60%
After-tax WACC 12.5% 16.0%
Selected WACC 14.3%

GUJGASLTD.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 GUJGASLTD.NS:

cost_of_equity (14.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.