AVRT.TA WACC - Weighted Average Cost of Capital

The WACC of Avrot Industries Ltd (AVRT.TA) is 9.2%.

The Cost of Equity of Avrot Industries Ltd (AVRT.TA) is 11.35%.

The Cost of Debt of Avrot Industries Ltd (AVRT.TA) is 5.30%.

	Range	Selected
Cost of equity	9.20% - 13.50%	11.35%
Tax rate	11.10% - 19.90%	15.50%
Cost of debt	4.30% - 6.30%	5.30%
WACC	7.6% - 10.9%	9.2%

WACC

AVRT.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.72	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	13.50%

Tax rate	11.10%	19.90%
Debt/Equity ratio	0.44	0.44
Cost of debt	4.30%	6.30%

After-tax WACC	7.6%	10.9%


Selected WACC	9.2%

AVRT.TA'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 AVRT.TA:

cost_of_equity (11.35%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.72) + 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.