ELT.WA WACC - Weighted Average Cost of Capital

The WACC of Elektrotim SA (ELT.WA) is 9.7%.

The Cost of Equity of Elektrotim SA (ELT.WA) is 9.70%.

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

	Range	Selected
Cost of equity	8.70% - 10.70%	9.70%
Tax rate	19.40% - 23.60%	21.50%
Cost of debt	6.10% - 22.80%	14.45%
WACC	8.5% - 11.0%	9.7%

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	0.5	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	10.70%

Tax rate	19.40%	23.60%
Debt/Equity ratio	0.03	0.03
Cost of debt	6.10%	22.80%

After-tax WACC	8.5%	11.0%


Selected WACC	9.7%

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 (9.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.5) + 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.