ATA.WA WACC - Weighted Average Cost of Capital

The WACC of ATC Cargo SA (ATA.WA) is 11.1%.

The Cost of Equity of ATC Cargo SA (ATA.WA) is 11.25%.

The Cost of Debt of ATC Cargo SA (ATA.WA) is 11.00%.

	Range	Selected
Cost of equity	9.80% - 12.70%	11.25%
Tax rate	21.30% - 22.40%	21.85%
Cost of debt	6.10% - 15.90%	11.00%
WACC	9.5% - 12.7%	11.1%

WACC

ATA.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.67	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.70%

Tax rate	21.30%	22.40%
Debt/Equity ratio	0.05	0.05
Cost of debt	6.10%	15.90%

After-tax WACC	9.5%	12.7%


Selected WACC	11.1%

ATA.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 ATA.WA:

cost_of_equity (11.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.67) + 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.