GTG.AX WACC - Weighted Average Cost of Capital
The WACC of Genetic Technologies Ltd (GTG.AX) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.4% - 8.7% | 7.55% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 8.2% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.47 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 8.7% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 8.2% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GTG.AX | Genetic Technologies Ltd | 0.09 | 1 | 0.94 |
| 043090.KQ | Cube&Company Co Ltd | 2.66 | -0.63 | -0.22 |
| 086040.KQ | Biotoxtech Co Ltd | 1.37 | 0.81 | 0.41 |
| 539267.BO | Dr Habeebullah Life Sciences Ltd | 0.07 | 0.22 | 0.21 |
| 6090.T | Human Metabolome Technologies Inc | 0.06 | 0.36 | 0.34 |
| BPH.AX | BPH Energy Ltd | 0.01 | 0.18 | 0.18 |
| CTE.AX | Cryosite Ltd | 0.06 | -0.44 | -0.42 |
| MEM.AX | Memphasys Ltd | 0.4 | -0.11 | -0.09 |
| OSL.AX | Oncosil Medical Ltd | 0 | 0.97 | 0.96 |
| PIQ.AX | Proteomics International Laboratories Ltd | 0.01 | 0.82 | 0.81 |
| Low | High | |
| Unlevered beta | 0.2 | 0.37 |
| Relevered beta | 0.21 | 0.4 |
| Adjusted relevered beta | 0.47 | 0.6 |
GTG.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 GTG.AX:
cost_of_equity (7.55%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.