AUX.WA WACC - Weighted Average Cost of Capital

The WACC of Auxilia SA (AUX.WA) is 9.9%.

The Cost of Equity of Auxilia SA (AUX.WA) is 9.90%.

The Cost of Debt of Auxilia SA (AUX.WA) is 11.75%.

	Range	Selected
Cost of equity	8.60% - 11.20%	9.90%
Tax rate	18.30% - 20.00%	19.15%
Cost of debt	6.20% - 17.30%	11.75%
WACC	8.3% - 11.5%	9.9%

WACC

AUX.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.49	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	11.20%

Tax rate	18.30%	20.00%
Debt/Equity ratio	0.12	0.12
Cost of debt	6.20%	17.30%

After-tax WACC	8.3%	11.5%


Selected WACC	9.9%

AUX.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 AUX.WA:

cost_of_equity (9.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.49) + 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.