TGOD.CN WACC - Weighted Average Cost of Capital

The WACC of Green Organic Dutchman Holdings Ltd (TGOD.CN) is 13.6%.

The Cost of Equity of Green Organic Dutchman Holdings Ltd (TGOD.CN) is 19.00%.

The Cost of Debt of Green Organic Dutchman Holdings Ltd (TGOD.CN) is 15.40%.

	Range	Selected
Cost of equity	16.20% - 21.80%	19.00%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	13.20% - 17.60%	15.40%
WACC	11.7% - 15.6%	13.6%

WACC

TGOD.CN WACC calculation

Category	Low	High

Long-term bond rate	3.6%	4.1%
Equity market risk premium	5.5%	6.5%
Adjusted beta	2.29	2.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.20%	21.80%

Tax rate	25.90%	26.50%
Debt/Equity ratio	2.32	2.32
Cost of debt	13.20%	17.60%

After-tax WACC	11.7%	15.6%


Selected WACC	13.6%

TGOD.CN'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 TGOD.CN:

cost_of_equity (19.00%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (2.29) + 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.