ARR.WA WACC - Weighted Average Cost of Capital
The WACC of Arteria SA (ARR.WA) is 7.8%.
| Range | Selected | |
| Cost of equity | 7.8% - 9.5% | 8.65% |
| Tax rate | 16.1% - 19.2% | 17.65% |
| Cost of debt | 4.2% - 7.0% | 5.6% |
| WACC | 6.9% - 8.7% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.36 | 0.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 9.5% |
| Tax rate | 16.1% | 19.2% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 4.2% | 7.0% |
| After-tax WACC | 6.9% | 8.7% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ARR.WA | Arteria SA | 0.28 | -0.08 | -0.06 |
| CBDG.PA | Compagnie du Cambodge SA | 0.01 | 0.09 | 0.09 |
| CEOEM.IS | CEO Event Medya AS | 0 | 1.07 | 1.07 |
| EBQ.L | Ebiquity PLC | 0.84 | -0.01 | -0.01 |
| HYVE.L | Hyve Group PLC | 0.33 | 0.27 | 0.21 |
| IEG.MI | Italian Exhibition Group SpA | 0.46 | 0.24 | 0.17 |
| JWNG.L | Jaywing PLC | 32.5 | -0.62 | -0.02 |
| MCHN.SW | MCH Group AG | 1.18 | 0.22 | 0.11 |
| SYS1.L | System1 Group PLC | 0.01 | -0.03 | -0.03 |
| TC | TuanChe Ltd | 3.03 | 0.22 | 0.06 |
| Low | High | |
| Unlevered beta | 0.04 | 0.1 |
| Relevered beta | 0.04 | 0.12 |
| Adjusted relevered beta | 0.36 | 0.41 |
ARR.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 ARR.WA:
cost_of_equity (8.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.36) + 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.