CWY.AX WACC - Weighted Average Cost of Capital
The WACC of Cleanaway Waste Management Ltd (CWY.AX) is 7.5%.
| Range | Selected | |
| Cost of equity | 7.5% - 9.9% | 8.7% |
| Tax rate | 29.1% - 29.6% | 29.35% |
| Cost of debt | 4.0% - 5.8% | 4.9% |
| WACC | 6.5% - 8.6% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.69 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 9.9% |
| Tax rate | 29.1% | 29.6% |
| Debt/Equity ratio | 0.29 | 0.29 |
| Cost of debt | 4.0% | 5.8% |
| After-tax WACC | 6.5% | 8.6% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CWY.AX | Cleanaway Waste Management Ltd | 0.29 | 0.55 | 0.46 |
| 000035.SZ | China Tianying Inc | 1.08 | 1.45 | 0.83 |
| 1AG.AX | Alterra Ltd | 4.37 | 0.9 | 0.22 |
| 601200.SS | Shanghai Environment Group Co Ltd | 0.93 | 0.69 | 0.42 |
| 601827.SS | Chongqing Sanfeng Environment Group Corp Ltd | 0.52 | 0.59 | 0.43 |
| 603568.SS | Zhejiang Weiming Environment Protection Co Ltd | 0.22 | 0.91 | 0.79 |
| 9787.T | Aeon Delight Co Ltd | 0 | 0.1 | 0.1 |
| 9793.T | Daiseki Co Ltd | 0.03 | 0.61 | 0.6 |
| AEI.AX | Aeris Environmental Ltd | 0.07 | 0.6 | 0.57 |
| BIN.AX | Bingo Industries Ltd | 0.17 | 1.23 | 1.1 |
| Low | High | |
| Unlevered beta | 0.45 | 0.58 |
| Relevered beta | 0.54 | 0.7 |
| Adjusted relevered beta | 0.69 | 0.8 |
CWY.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 CWY.AX:
cost_of_equity (8.70%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.69) + 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.