EMA.WA WACC - Weighted Average Cost of Capital

The WACC of Elemental Asia SA (EMA.WA) is 9.8%.

The Cost of Equity of Elemental Asia SA (EMA.WA) is 10.75%.

The Cost of Debt of Elemental Asia SA (EMA.WA) is 7.00%.

	Range	Selected
Cost of equity	9.40% - 12.10%	10.75%
Tax rate	12.90% - 29.30%	21.10%
Cost of debt	7.00% - 7.00%	7.00%
WACC	8.8% - 10.9%	9.8%

WACC

EMA.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.61	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	12.10%

Tax rate	12.90%	29.30%
Debt/Equity ratio	0.2	0.2
Cost of debt	7.00%	7.00%

After-tax WACC	8.8%	10.9%


Selected WACC	9.8%

EMA.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 EMA.WA:

cost_of_equity (10.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.61) + 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.