HZR.AX WACC - Weighted Average Cost of Capital
The WACC of Hazer Group Ltd (HZR.AX) is 7.5%.
| Range | Selected | |
| Cost of equity | 6.6% - 8.4% | 7.5% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 6.6% - 8.4% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.51 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 8.4% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 6.6% | 8.4% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HZR.AX | Hazer Group Ltd | 0 | 1.22 | 1.21 |
| 131100.KQ | Sky E&M Co Ltd | 0.47 | 0.55 | 0.41 |
| 187420.KQ | GenoFocus Inc | 0.49 | -0.2 | -0.15 |
| 317870.KQ | Envioneer Co Ltd | 0.11 | 0.27 | 0.26 |
| 506642.BO | Sadhana Nitro Chem Ltd | 0.04 | 0.56 | 0.54 |
| ANO.AX | Advance Nanotek Ltd | 0.04 | 0.54 | 0.52 |
| CLV.AX | Clover Corporation Ltd | 0.11 | 0.3 | 0.28 |
| LER.AX | Leaf Resources Ltd | 0.05 | -0.27 | -0.26 |
| SES.AX | Secos Group Ltd | 0.08 | -0.53 | -0.5 |
| ZNO.AX | Zoono Group Ltd | 0.06 | 0.32 | 0.3 |
| Low | High | |
| Unlevered beta | 0.27 | 0.35 |
| Relevered beta | 0.27 | 0.33 |
| Adjusted relevered beta | 0.51 | 0.55 |
HZR.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 HZR.AX:
cost_of_equity (7.50%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.