HUM.AX WACC - Weighted Average Cost of Capital
The WACC of Humm Group Ltd (HUM.AX) is 4.9%.
| Range | Selected | |
| Cost of equity | 7.6% - 11.6% | 9.6% |
| Tax rate | 13.4% - 18.7% | 16.05% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.7% - 6.0% | 4.9% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.71 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 11.6% |
| Tax rate | 13.4% | 18.7% |
| Debt/Equity ratio | 16.24 | 16.24 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.7% | 6.0% |
| Selected WACC | 4.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HUM.AX | Humm Group Ltd | 16.24 | 1.15 | 0.08 |
| 023460.KQ | CNH Co Ltd | 48.32 | 0.08 | 0 |
| AEONCR.KL | AEON Credit Service (M) Bhd | 3.71 | 0.31 | 0.07 |
| ECX.AX | Eclipx Group Ltd | 1.53 | 1.73 | 0.74 |
| FSA.AX | FSA Group Ltd | 4.63 | 0.45 | 0.09 |
| MNY.AX | Money3 Corp Ltd | 1.42 | 2.08 | 0.94 |
| PGL.AX | Prospa Group Ltd | 10.73 | -0.93 | -0.09 |
| PLT.AX | Plenti Group Ltd | 15.79 | 0.4 | 0.03 |
| SFIN.ME | Safmar Finansovye Investitsii PAO | 1.32 | 0.09 | 0.04 |
| WZR.AX | WISR Ltd | 22.59 | 0.4 | 0.02 |
| Low | High | |
| Unlevered beta | 0.04 | 0.07 |
| Relevered beta | 0.57 | 1.13 |
| Adjusted relevered beta | 0.71 | 1.09 |
HUM.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 HUM.AX:
cost_of_equity (9.60%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.