AVAX.AT WACC - Weighted Average Cost of Capital

The WACC of Avax SA (AVAX.AT) is 9.3%.

The Cost of Equity of Avax SA (AVAX.AT) is 11.45%.

The Cost of Debt of Avax SA (AVAX.AT) is 9.85%.

	Range	Selected
Cost of equity	9.70% - 13.20%	11.45%
Tax rate	23.20% - 24.00%	23.60%
Cost of debt	4.60% - 15.10%	9.85%
WACC	6.3% - 12.3%	9.3%

WACC

AVAX.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.73	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	13.20%

Tax rate	23.20%	24.00%
Debt/Equity ratio	1.19	1.19
Cost of debt	4.60%	15.10%

After-tax WACC	6.3%	12.3%


Selected WACC	9.3%

AVAX.AT'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 AVAX.AT:

cost_of_equity (11.45%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.73) + 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.