GULFNAV.DB WACC - Weighted Average Cost of Capital

The WACC of Gulf Navigation Holding PJSC (GULFNAV.DB) is 8.8%.

The Cost of Equity of Gulf Navigation Holding PJSC (GULFNAV.DB) is 8.85%.

The Cost of Debt of Gulf Navigation Holding PJSC (GULFNAV.DB) is 6.25%.

	Range	Selected
Cost of equity	7.90% - 9.80%	8.85%
Tax rate	2.10% - 5.40%	3.75%
Cost of debt	5.50% - 7.00%	6.25%
WACC	7.9% - 9.7%	8.8%

WACC

GULFNAV.DB WACC calculation

Category	Low	High

Long-term bond rate	5.9%	6.4%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.35	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	9.80%

Tax rate	2.10%	5.40%
Debt/Equity ratio	0.02	0.02
Cost of debt	5.50%	7.00%

After-tax WACC	7.9%	9.7%


Selected WACC	8.8%

GULFNAV.DB'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 GULFNAV.DB:

cost_of_equity (8.85%) = risk_free_rate (6.15%) + equity_risk_premium (6.30%) * adjusted_beta (0.35) + 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.