EQTL.TA WACC - Weighted Average Cost of Capital

The WACC of Equital Ltd (EQTL.TA) is 8.5%.

The Cost of Equity of Equital Ltd (EQTL.TA) is 17.15%.

The Cost of Debt of Equital Ltd (EQTL.TA) is 4.75%.

	Range	Selected
Cost of equity	13.50% - 20.80%	17.15%
Tax rate	20.70% - 23.20%	21.95%
Cost of debt	4.00% - 5.50%	4.75%
WACC	6.8% - 10.1%	8.5%

WACC

EQTL.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.41	2.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.50%	20.80%

Tax rate	20.70%	23.20%
Debt/Equity ratio	1.82	1.82
Cost of debt	4.00%	5.50%

After-tax WACC	6.8%	10.1%


Selected WACC	8.5%

EQTL.TA'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 EQTL.TA:

cost_of_equity (17.15%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.41) + 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.