EMU.WA WACC - Weighted Average Cost of Capital

The WACC of e-Muzyka SA (EMU.WA) is 9.0%.

The Cost of Equity of e-Muzyka SA (EMU.WA) is 8.95%.

The Cost of Debt of e-Muzyka SA (EMU.WA) is 6.70%.

	Range	Selected
Cost of equity	8.00% - 9.90%	8.95%
Tax rate	20.40% - 39.20%	29.80%
Cost of debt	6.70% - 6.70%	6.70%
WACC	8.0% - 9.9%	9.0%

WACC

EMU.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.4	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	9.90%

Tax rate	20.40%	39.20%
Debt/Equity ratio	0	0
Cost of debt	6.70%	6.70%

After-tax WACC	8.0%	9.9%


Selected WACC	9.0%

EMU.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 EMU.WA:

cost_of_equity (8.95%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.4) + 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.