EVS.AX WACC - Weighted Average Cost of Capital
The WACC of Envirosuite Ltd (EVS.AX) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.7% | 6.45% |
| Tax rate | 2.4% - 3.5% | 2.95% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 5.1% - 7.4% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.14 | 0.36 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.2% | 7.7% |
| Tax rate | 2.4% | 3.5% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 5.1% | 7.4% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EVS.AX | Envirosuite Ltd | 0.1 | -1.78 | -1.63 |
| 040350.KQ | Curocom Co Ltd | 0.28 | 0.04 | 0.03 |
| ADA.AX | Adacel Technologies Ltd | 0.3 | 0.79 | 0.62 |
| DTC.AX | Damstra Holdings Ltd | 0.21 | -1.06 | -0.88 |
| EOL.AX | Energy One Ltd | 0.04 | -0.46 | -0.44 |
| IRI.AX | Integrated Research Ltd | 0.02 | 0.06 | 0.06 |
| IS3.AX | I Synergy Group Ltd | 0 | 0.19 | 0.19 |
| UBN.AX | Urbanise com Ltd | 0.01 | -0.36 | -0.36 |
| VR1.AX | Vection Technologies Ltd | 0.33 | -0.25 | -0.19 |
| XF1.AX | Xref Ltd | 0.2 | 0.09 | 0.08 |
| Low | High | |
| Unlevered beta | -0.26 | 0.04 |
| Relevered beta | -0.28 | 0.04 |
| Adjusted relevered beta | 0.14 | 0.36 |
EVS.AX'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 EVS.AX:
cost_of_equity (6.45%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.14) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.