ASB.WA WACC - Weighted Average Cost of Capital

The WACC of ASBISc Enterprises PLC (ASB.WA) is 8.9%.

The Cost of Equity of ASBISc Enterprises PLC (ASB.WA) is 11.60%.

The Cost of Debt of ASBISc Enterprises PLC (ASB.WA) is 6.15%.

	Range	Selected
Cost of equity	9.90% - 13.30%	11.60%
Tax rate	17.60% - 18.20%	17.90%
Cost of debt	5.70% - 6.60%	6.15%
WACC	7.8% - 10.0%	8.9%

WACC

ASB.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.7	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	13.30%

Tax rate	17.60%	18.20%
Debt/Equity ratio	0.72	0.72
Cost of debt	5.70%	6.60%

After-tax WACC	7.8%	10.0%


Selected WACC	8.9%

ASB.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 ASB.WA:

cost_of_equity (11.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.7) + 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.