GME.WA WACC - Weighted Average Cost of Capital

The WACC of Gremi Media SA (GME.WA) is 7.8%.

The Cost of Equity of Gremi Media SA (GME.WA) is 7.85%.

The Cost of Debt of Gremi Media SA (GME.WA) is 5.00%.

	Range	Selected
Cost of equity	6.40% - 9.30%	7.85%
Tax rate	25.10% - 28.80%	26.95%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.4% - 9.3%	7.8%

WACC

GME.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.14	0.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	9.30%

Tax rate	25.10%	28.80%
Debt/Equity ratio	0.01	0.01
Cost of debt	5.00%	5.00%

After-tax WACC	6.4%	9.3%


Selected WACC	7.8%

GME.WA'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 GME.WA:

cost_of_equity (7.85%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.14) + 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.