Green Organic Dutchman Holdings Ltd (TGOD.CN) WACC Analysis

As of June 14, 2025, Green Organic Dutchman Holdings Ltd (TGOD.CN) carries a Weighted Average Cost of Capital (WACC) of 13.6%. WACC reflects the blended rate Green Organic Dutchman Holdings Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 16.2%, the cost of debt is 13.2%, and the effective tax rate is 25.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.6% – 4.1%
• Equity market risk premium: 5.5% – 6.5%
• Adjusted beta: 2.29 – 2.65
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 2.32

What It Means for Investors

With a selected WACC of 13.6%, Green Organic Dutchman Holdings Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.