ADV.WA WACC - Weighted Average Cost of Capital

The WACC of Adiuvo Investments SA (ADV.WA) is 7.0%.

The Cost of Equity of Adiuvo Investments SA (ADV.WA) is 11.65%.

The Cost of Debt of Adiuvo Investments SA (ADV.WA) is 5.00%.

	Range	Selected
Cost of equity	8.20% - 15.10%	11.65%
Tax rate	2.60% - 5.10%	3.85%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.0% - 8.1%	7.0%

WACC

ADV.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.43	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	15.10%

Tax rate	2.60%	5.10%
Debt/Equity ratio	2.07	2.07
Cost of debt	5.00%	5.00%

After-tax WACC	6.0%	8.1%


Selected WACC	7.0%

ADV.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 ADV.WA:

cost_of_equity (11.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.43) + 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.