CIO.AX WACC - Weighted Average Cost of Capital
The WACC of Connected IO Ltd (CIO.AX) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.6% - 10.1% | 8.35% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.8% - 7.5% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.51 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 10.1% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.8% | 7.5% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CIO.AX | Connected IO Ltd | 1.04 | 0.81 | 0.47 |
| 028080.KQ | Humax Holdings Co Ltd | 7.16 | 0.69 | 0.11 |
| 517258.BO | Precision Electronics Ltd | 0.12 | 0.64 | 0.59 |
| 526775.BO | Valiant Communications Ltd | 0 | 1.05 | 1.05 |
| 532975.BO | Aishwarya Technologies and Telecom Ltd | 0.09 | 0.58 | 0.55 |
| BCC.AX | Beam Communications Holdings Ltd | 0.05 | 1.07 | 1.03 |
| KAVVERITEL.NS | Kavveri Telecom Products Ltd | 0.2 | 0.3 | 0.26 |
| SMT.VN | Sametel Corp | 0.56 | 0.61 | 0.44 |
| TNTELE.NS | Tamilnadu Telecommunication Ltd | 0.78 | 0.32 | 0.21 |
| TST.VN | Telecommunication Technical Service JSC | 0.73 | 0.25 | 0.16 |
| UNI.VN | Vien Lien JSC | 1.15 | 0.41 | 0.23 |
| Low | High | |
| Unlevered beta | 0.26 | 0.47 |
| Relevered beta | 0.27 | 0.75 |
| Adjusted relevered beta | 0.51 | 0.83 |
CIO.AX'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 CIO.AX:
cost_of_equity (8.35%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.