ENT.WA WACC - Weighted Average Cost of Capital

The WACC of Enter Air SA (ENT.WA) is 7.6%.

The Cost of Equity of Enter Air SA (ENT.WA) is 12.75%.

The Cost of Debt of Enter Air SA (ENT.WA) is 5.30%.

	Range	Selected
Cost of equity	10.50% - 15.00%	12.75%
Tax rate	17.60% - 18.10%	17.85%
Cost of debt	4.00% - 6.60%	5.30%
WACC	6.0% - 9.1%	7.6%

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	0.78	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	15.00%

Tax rate	17.60%	18.10%
Debt/Equity ratio	1.6	1.6
Cost of debt	4.00%	6.60%

After-tax WACC	6.0%	9.1%


Selected WACC	7.6%

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 (12.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.78) + 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.