EAH.WA WACC - Weighted Average Cost of Capital

The WACC of Esotiq & Henderson SA (EAH.WA) is 8.8%.

The Cost of Equity of Esotiq & Henderson SA (EAH.WA) is 10.60%.

The Cost of Debt of Esotiq & Henderson SA (EAH.WA) is 5.85%.

	Range	Selected
Cost of equity	8.60% - 12.60%	10.60%
Tax rate	20.40% - 26.50%	23.45%
Cost of debt	5.30% - 6.40%	5.85%
WACC	7.3% - 10.3%	8.8%

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	0.48	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	12.60%

Tax rate	20.40%	26.50%
Debt/Equity ratio	0.4	0.4
Cost of debt	5.30%	6.40%

After-tax WACC	7.3%	10.3%


Selected WACC	8.8%

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 (10.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.48) + 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.