AWM.WA WACC - Weighted Average Cost of Capital

The WACC of Airway Medix SA (AWM.WA) is 6.4%.

The Cost of Equity of Airway Medix SA (AWM.WA) is 8.15%.

The Cost of Debt of Airway Medix SA (AWM.WA) is 5.00%.

	Range	Selected
Cost of equity	6.40% - 9.90%	8.15%
Tax rate	0.90% - 8.70%	4.80%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.7% - 7.1%	6.4%

WACC

AWM.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.14	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	9.90%

Tax rate	0.90%	8.70%
Debt/Equity ratio	1.11	1.11
Cost of debt	5.00%	5.00%

After-tax WACC	5.7%	7.1%


Selected WACC	6.4%

AWM.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 AWM.WA:

cost_of_equity (8.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.14) + 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.