EXC.WA WACC - Weighted Average Cost of Capital

The WACC of Excellence SA (EXC.WA) is 11.8%.

The Cost of Equity of Excellence SA (EXC.WA) is 12.25%.

The Cost of Debt of Excellence SA (EXC.WA) is 6.00%.

	Range	Selected
Cost of equity	11.00% - 13.50%	12.25%
Tax rate	17.00% - 22.00%	19.50%
Cost of debt	5.90% - 6.10%	6.00%
WACC	10.7% - 12.9%	11.8%

WACC

EXC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.87	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	13.50%

Tax rate	17.00%	22.00%
Debt/Equity ratio	0.07	0.07
Cost of debt	5.90%	6.10%

After-tax WACC	10.7%	12.9%


Selected WACC	11.8%

EXC.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 EXC.WA:

cost_of_equity (12.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.87) + 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.