BRND.TA WACC - Weighted Average Cost of Capital

The WACC of Brand Industries Ltd (BRND.TA) is 7.9%.

The Cost of Equity of Brand Industries Ltd (BRND.TA) is 19.45%.

The Cost of Debt of Brand Industries Ltd (BRND.TA) is 5.00%.

	Range	Selected
Cost of equity	13.40% - 25.50%	19.45%
Tax rate	22.90% - 28.20%	25.55%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.4% - 9.4%	7.9%

WACC

BRND.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.4	2.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	25.50%

Tax rate	22.90%	28.20%
Debt/Equity ratio	2.76	2.76
Cost of debt	5.00%	5.00%

After-tax WACC	6.4%	9.4%


Selected WACC	7.9%

BRND.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 BRND.TA:

cost_of_equity (19.45%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.4) + 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.