ELWS.TA WACC - Weighted Average Cost of Capital

The WACC of Electreon Wireless Ltd (ELWS.TA) is 9.4%.

The Cost of Equity of Electreon Wireless Ltd (ELWS.TA) is 9.20%.

The Cost of Debt of Electreon Wireless Ltd (ELWS.TA) is 35.65%.

	Range	Selected
Cost of equity	7.80% - 10.60%	9.20%
Tax rate	23.00% - 23.00%	23.00%
Cost of debt	7.00% - 64.30%	35.65%
WACC	7.8% - 11.1%	9.4%

WACC

ELWS.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.48	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.60%

Tax rate	23.00%	23.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.00%	64.30%

After-tax WACC	7.8%	11.1%


Selected WACC	9.4%

ELWS.TA'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 ELWS.TA:

cost_of_equity (9.20%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * 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.