AZC.WA WACC - Weighted Average Cost of Capital

The WACC of Aztec International SA (AZC.WA) is 7.5%.

The Cost of Equity of Aztec International SA (AZC.WA) is 8.95%.

The Cost of Debt of Aztec International SA (AZC.WA) is 6.90%.

	Range	Selected
Cost of equity	7.90% - 10.00%	8.95%
Tax rate	21.90% - 25.50%	23.70%
Cost of debt	6.80% - 7.00%	6.90%
WACC	6.8% - 8.1%	7.5%

WACC

AZC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.38	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.00%

Tax rate	21.90%	25.50%
Debt/Equity ratio	0.67	0.67
Cost of debt	6.80%	7.00%

After-tax WACC	6.8%	8.1%


Selected WACC	7.5%

AZC.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 AZC.WA:

cost_of_equity (8.95%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.38) + 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.