11B.WA WACC - Weighted Average Cost of Capital

The WACC of 11 Bit Studios SA (11B.WA) is 9.3%.

The Cost of Equity of 11 Bit Studios SA (11B.WA) is 9.35%.

The Cost of Debt of 11 Bit Studios SA (11B.WA) is 5.10%.

	Range	Selected
Cost of equity	7.80% - 10.90%	9.35%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	4.10% - 6.10%	5.10%
WACC	7.7% - 10.9%	9.3%

WACC

11B.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.36	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.90%

Tax rate	19.00%	19.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.10%	6.10%

After-tax WACC	7.7%	10.9%


Selected WACC	9.3%

11B.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 11B.WA:

cost_of_equity (9.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.36) + 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.