ENT.WA WACC - Weighted Average Cost of Capital

The WACC of Enter Air SA (ENT.WA) is 7.0%.

The Cost of Equity of Enter Air SA (ENT.WA) is 9.60%.

The Cost of Debt of Enter Air SA (ENT.WA) is 6.95%.

	Range	Selected
Cost of equity	8.00% - 11.20%	9.60%
Tax rate	16.40% - 17.20%	16.80%
Cost of debt	4.80% - 9.10%	6.95%
WACC	5.3% - 8.7%	7.0%

WACC

ENT.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	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	11.20%

Tax rate	16.40%	17.20%
Debt/Equity ratio	2.24	2.24
Cost of debt	4.80%	9.10%

After-tax WACC	5.3%	8.7%


Selected WACC	7.0%

ENT.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 ENT.WA:

cost_of_equity (9.60%) = 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.