ATR.WA WACC - Weighted Average Cost of Capital

The WACC of Atrem SA (ATR.WA) is 9.6%.

The Cost of Equity of Atrem SA (ATR.WA) is 9.75%.

The Cost of Debt of Atrem SA (ATR.WA) is 8.55%.

	Range	Selected
Cost of equity	8.00% - 11.50%	9.75%
Tax rate	22.00% - 22.70%	22.35%
Cost of debt	6.60% - 10.50%	8.55%
WACC	7.8% - 11.3%	9.6%

WACC

ATR.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.39	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	11.50%

Tax rate	22.00%	22.70%
Debt/Equity ratio	0.05	0.05
Cost of debt	6.60%	10.50%

After-tax WACC	7.8%	11.3%


Selected WACC	9.6%

ATR.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 ATR.WA:

cost_of_equity (9.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.39) + 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.