EQTL.TA WACC - Weighted Average Cost of Capital

The WACC of Equital Ltd (EQTL.TA) is 7.7%.

The Cost of Equity of Equital Ltd (EQTL.TA) is 15.75%.

The Cost of Debt of Equital Ltd (EQTL.TA) is 4.95%.

	Range	Selected
Cost of equity	13.20% - 18.30%	15.75%
Tax rate	20.70% - 23.20%	21.95%
Cost of debt	4.00% - 5.90%	4.95%
WACC	6.4% - 8.9%	7.7%

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	1.36	1.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	18.30%

Tax rate	20.70%	23.20%
Debt/Equity ratio	2.12	2.12
Cost of debt	4.00%	5.90%

After-tax WACC	6.4%	8.9%


Selected WACC	7.7%

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 (15.75%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.36) + 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.