ETL.WA WACC - Weighted Average Cost of Capital

The WACC of Eurotel SA (ETL.WA) is 9.9%.

The Cost of Equity of Eurotel SA (ETL.WA) is 11.35%.

The Cost of Debt of Eurotel SA (ETL.WA) is 5.10%.

	Range	Selected
Cost of equity	8.80% - 13.90%	11.35%
Tax rate	19.20% - 19.40%	19.30%
Cost of debt	4.00% - 6.20%	5.10%
WACC	7.7% - 12.1%	9.9%

WACC

ETL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.53	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	13.90%

Tax rate	19.20%	19.40%
Debt/Equity ratio	0.26	0.26
Cost of debt	4.00%	6.20%

After-tax WACC	7.7%	12.1%


Selected WACC	9.9%

ETL.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 ETL.WA:

cost_of_equity (11.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.53) + 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.