ELT.WA WACC - Weighted Average Cost of Capital

The WACC of Elektrotim SA (ELT.WA) is 9.3%.

The Cost of Equity of Elektrotim SA (ELT.WA) is 9.30%.

The Cost of Debt of Elektrotim SA (ELT.WA) is 14.45%.

	Range	Selected
Cost of equity	8.20% - 10.40%	9.30%
Tax rate	19.40% - 23.60%	21.50%
Cost of debt	6.10% - 22.80%	14.45%
WACC	8.1% - 10.6%	9.3%

WACC

ELT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.42	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	10.40%

Tax rate	19.40%	23.60%
Debt/Equity ratio	0.02	0.02
Cost of debt	6.10%	22.80%

After-tax WACC	8.1%	10.6%


Selected WACC	9.3%

ELT.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 ELT.WA:

cost_of_equity (9.30%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.42) + 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.