CWY.AX WACC - Weighted Average Cost of Capital

The WACC of Cleanaway Waste Management Ltd (CWY.AX) is 7.5%.

The Cost of Equity of Cleanaway Waste Management Ltd (CWY.AX) is 8.70%.

The Cost of Debt of Cleanaway Waste Management Ltd (CWY.AX) is 4.90%.

	Range	Selected
Cost of equity	7.50% - 9.90%	8.70%
Tax rate	29.10% - 29.60%	29.35%
Cost of debt	4.00% - 5.80%	4.90%
WACC	6.5% - 8.6%	7.5%

WACC

CWY.AX WACC calculation

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	7.50%	9.90%

Tax rate	29.10%	29.60%
Debt/Equity ratio	0.29	0.29
Cost of debt	4.00%	5.80%

After-tax WACC	6.5%	8.6%


Selected WACC	7.5%

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.