ARR.WA WACC - Weighted Average Cost of Capital

The WACC of Arteria SA (ARR.WA) is 7.8%.

The Cost of Equity of Arteria SA (ARR.WA) is 8.75%.

The Cost of Debt of Arteria SA (ARR.WA) is 5.60%.

	Range	Selected
Cost of equity	7.90% - 9.60%	8.75%
Tax rate	16.10% - 19.20%	17.65%
Cost of debt	4.20% - 7.00%	5.60%
WACC	6.9% - 8.8%	7.8%

WACC

ARR.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	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	9.60%

Tax rate	16.10%	19.20%
Debt/Equity ratio	0.28	0.28
Cost of debt	4.20%	7.00%

After-tax WACC	6.9%	8.8%


Selected WACC	7.8%

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 (8.75%) = 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.