ADV.WA WACC - Weighted Average Cost of Capital

The WACC of Adiuvo Investments SA (ADV.WA) is 7.1%.

The Cost of Equity of Adiuvo Investments SA (ADV.WA) is 10.10%.

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

	Range	Selected
Cost of equity	7.90% - 12.30%	10.10%
Tax rate	2.60% - 5.10%	3.85%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.2% - 8.1%	7.1%

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	0.37	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	12.30%

Tax rate	2.60%	5.10%
Debt/Equity ratio	1.28	1.28
Cost of debt	5.00%	5.00%

After-tax WACC	6.2%	8.1%


Selected WACC	7.1%

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 (10.10%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.37) + 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.