ACG.WA WACC - Weighted Average Cost of Capital

The WACC of AC SA (ACG.WA) is 10.9%.

The Cost of Equity of AC SA (ACG.WA) is 11.50%.

The Cost of Debt of AC SA (ACG.WA) is 7.35%.

	Range	Selected
Cost of equity	10.10% - 12.90%	11.50%
Tax rate	12.40% - 14.60%	13.50%
Cost of debt	6.10% - 8.60%	7.35%
WACC	9.5% - 12.3%	10.9%

WACC

ACG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.73	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.90%

Tax rate	12.40%	14.60%
Debt/Equity ratio	0.14	0.14
Cost of debt	6.10%	8.60%

After-tax WACC	9.5%	12.3%


Selected WACC	10.9%

ACG.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 ACG.WA:

cost_of_equity (11.50%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.73) + 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.