EMCO.TA WACC - Weighted Average Cost of Capital

The WACC of E & M Computing Ltd (EMCO.TA) is 9.7%.

The Cost of Equity of E & M Computing Ltd (EMCO.TA) is 15.60%.

The Cost of Debt of E & M Computing Ltd (EMCO.TA) is 6.15%.

	Range	Selected
Cost of equity	11.70% - 19.50%	15.60%
Tax rate	28.70% - 30.30%	29.50%
Cost of debt	5.70% - 6.60%	6.15%
WACC	7.8% - 11.7%	9.7%

WACC

EMCO.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.13	1.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	19.50%

Tax rate	28.70%	30.30%
Debt/Equity ratio	1.08	1.08
Cost of debt	5.70%	6.60%

After-tax WACC	7.8%	11.7%


Selected WACC	9.7%

EMCO.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 EMCO.TA:

cost_of_equity (15.60%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.13) + 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.