AGP.WA WACC - Weighted Average Cost of Capital

The WACC of Agromep SA (AGP.WA) is 8.9%.

The Cost of Equity of Agromep SA (AGP.WA) is 10.60%.

The Cost of Debt of Agromep SA (AGP.WA) is 6.85%.

	Range	Selected
Cost of equity	8.60% - 12.60%	10.60%
Tax rate	18.40% - 19.80%	19.10%
Cost of debt	6.70% - 7.00%	6.85%
WACC	7.6% - 10.2%	8.9%

WACC

AGP.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.49	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	12.60%

Tax rate	18.40%	19.80%
Debt/Equity ratio	0.5	0.5
Cost of debt	6.70%	7.00%

After-tax WACC	7.6%	10.2%


Selected WACC	8.9%

AGP.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 AGP.WA:

cost_of_equity (10.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.49) + 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.