ANR.WA WACC - Weighted Average Cost of Capital

The WACC of Answear.Com SA (ANR.WA) is 8.6%.

The Cost of Equity of Answear.Com SA (ANR.WA) is 8.40%.

The Cost of Debt of Answear.Com SA (ANR.WA) is 11.60%.

	Range	Selected
Cost of equity	6.10% - 10.70%	8.40%
Tax rate	21.80% - 23.10%	22.45%
Cost of debt	5.90% - 17.30%	11.60%
WACC	5.7% - 11.5%	8.6%

WACC

ANR.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.1	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	10.70%

Tax rate	21.80%	23.10%
Debt/Equity ratio	0.45	0.45
Cost of debt	5.90%	17.30%

After-tax WACC	5.7%	11.5%


Selected WACC	8.6%

ANR.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 ANR.WA:

cost_of_equity (8.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.1) + 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.