AGP.WA WACC - Weighted Average Cost of Capital

The WACC of Agromep SA (AGP.WA) is 9.9%.

The Cost of Equity of Agromep SA (AGP.WA) is 11.40%.

The Cost of Debt of Agromep SA (AGP.WA) is 6.40%.

	Range	Selected
Cost of equity	9.50% - 13.30%	11.40%
Tax rate	15.90% - 17.50%	16.70%
Cost of debt	5.80% - 7.00%	6.40%
WACC	8.3% - 11.5%	9.9%

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	0.62	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	13.30%

Tax rate	15.90%	17.50%
Debt/Equity ratio	0.33	0.33
Cost of debt	5.80%	7.00%

After-tax WACC	8.3%	11.5%


Selected WACC	9.9%

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 (11.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.62) + 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.