EAH.WA WACC - Weighted Average Cost of Capital

The WACC of Esotiq & Henderson SA (EAH.WA) is 9.4%.

The Cost of Equity of Esotiq & Henderson SA (EAH.WA) is 11.80%.

The Cost of Debt of Esotiq & Henderson SA (EAH.WA) is 7.05%.

	Range	Selected
Cost of equity	9.60% - 14.00%	11.80%
Tax rate	19.80% - 20.50%	20.15%
Cost of debt	6.40% - 7.70%	7.05%
WACC	7.8% - 10.9%	9.4%

WACC

EAH.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.65	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	14.00%

Tax rate	19.80%	20.50%
Debt/Equity ratio	0.64	0.64
Cost of debt	6.40%	7.70%

After-tax WACC	7.8%	10.9%


Selected WACC	9.4%

EAH.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 EAH.WA:

cost_of_equity (11.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.65) + 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.