ENT.WA WACC - Weighted Average Cost of Capital

The WACC of Enter Air SA (ENT.WA) is 7.7%.

The Cost of Equity of Enter Air SA (ENT.WA) is 13.00%.

The Cost of Debt of Enter Air SA (ENT.WA) is 5.05%.

	Range	Selected
Cost of equity	10.80% - 15.20%	13.00%
Tax rate	17.60% - 18.10%	17.85%
Cost of debt	4.00% - 6.10%	5.05%
WACC	6.3% - 9.1%	7.7%

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	0.83	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	15.20%

Tax rate	17.60%	18.10%
Debt/Equity ratio	1.46	1.46
Cost of debt	4.00%	6.10%

After-tax WACC	6.3%	9.1%


Selected WACC	7.7%

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 (13.00%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.83) + 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.