ENS.NZ WACC - Weighted Average Cost of Capital
The WACC of Enprise Group Ltd (ENS.NZ) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.4% - 9.0% | 7.7% |
| Tax rate | 9.3% - 41.2% | 25.25% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.9% - 8.2% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 4.3% | 4.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.41 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 9.0% |
| Tax rate | 9.3% | 41.2% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.9% | 8.2% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ENS.NZ | Enprise Group Ltd | 0.2 | 0.16 | 0.14 |
| 1933.HK | OneForce Holdings Ltd | 2.63 | 0.13 | 0.04 |
| 258790.KQ | SoftCamp Co Ltd | 0.32 | -0.58 | -0.45 |
| 9SP.AX | 9 Spokes International Ltd | 0.12 | 1.3 | 1.17 |
| AR9.AX | Archtis Ltd | 0.06 | 0.01 | 0.01 |
| CPT.AX | Cipherpoint Ltd | 0.07 | 0.92 | 0.87 |
| K2F.AX | K2FLY Ltd | 0 | 0.91 | 0.9 |
| PRO.AX | Prophecy International Holdings Ltd | 0.03 | -0.02 | -0.02 |
| PYS.NZ | Paysauce Ltd | 0.04 | 0.19 | 0.18 |
| SMETRIC.KL | Securemetric Bhd | 0.03 | 0.63 | 0.61 |
| Low | High | |
| Unlevered beta | 0.1 | 0.35 |
| Relevered beta | 0.12 | 0.42 |
| Adjusted relevered beta | 0.41 | 0.61 |
ENS.NZ'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 ENS.NZ:
cost_of_equity (7.70%) = risk_free_rate (4.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.41) + 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.