ECA.WA WACC - Weighted Average Cost of Capital

The WACC of Uhy Eca SA (ECA.WA) is 11.8%.

The Cost of Equity of Uhy Eca SA (ECA.WA) is 12.45%.

The Cost of Debt of Uhy Eca SA (ECA.WA) is 5.95%.

	Range	Selected
Cost of equity	11.10% - 13.80%	12.45%
Tax rate	27.80% - 33.00%	30.40%
Cost of debt	4.00% - 7.90%	5.95%
WACC	10.5% - 13.2%	11.8%

WACC

ECA.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.69	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	13.80%

Tax rate	27.80%	33.00%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.00%	7.90%

After-tax WACC	10.5%	13.2%


Selected WACC	11.8%

ECA.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 ECA.WA:

cost_of_equity (12.45%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * 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.