ATL.WA WACC - Weighted Average Cost of Capital

The WACC of Atlas Estates Ltd (ATL.WA) is 7.3%.

The Cost of Equity of Atlas Estates Ltd (ATL.WA) is 10.25%.

The Cost of Debt of Atlas Estates Ltd (ATL.WA) is 7.35%.

	Range	Selected
Cost of equity	8.40% - 12.10%	10.25%
Tax rate	6.90% - 11.20%	9.05%
Cost of debt	4.00% - 10.70%	7.35%
WACC	4.6% - 10.0%	7.3%

WACC

ATL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.46	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	12.10%

Tax rate	6.90%	11.20%
Debt/Equity ratio	4.22	4.22
Cost of debt	4.00%	10.70%

After-tax WACC	4.6%	10.0%


Selected WACC	7.3%

ATL.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 ATL.WA:

cost_of_equity (10.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.46) + 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.