ENG.WA WACC - Weighted Average Cost of Capital

The WACC of Energa SA (ENG.WA) is 8.4%.

The Cost of Equity of Energa SA (ENG.WA) is 11.35%.

The Cost of Debt of Energa SA (ENG.WA) is 8.85%.

	Range	Selected
Cost of equity	9.90% - 12.80%	11.35%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	7.00% - 10.70%	8.85%
WACC	6.9% - 9.9%	8.4%

WACC

ENG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.69	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	12.80%

Tax rate	19.00%	19.00%
Debt/Equity ratio	2.44	2.44
Cost of debt	7.00%	10.70%

After-tax WACC	6.9%	9.9%


Selected WACC	8.4%

ENG.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 ENG.WA:

cost_of_equity (11.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.69) + 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.