INV.WA WACC - Weighted Average Cost of Capital

The WACC of Invista SA (INV.WA) is 10.6%.

The Cost of Equity of Invista SA (INV.WA) is 10.80%.

The Cost of Debt of Invista SA (INV.WA) is 5.00%.

	Range	Selected
Cost of equity	9.30% - 12.30%	10.80%
Tax rate	13.20% - 46.00%	29.60%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.2% - 12.1%	10.6%

WACC

INV.WA WACC calculation

Category	Low	High

Long-term bond rate	5.6%	6.1%
Equity market risk premium	6.8%	7.8%
Adjusted beta	0.54	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.30%

Tax rate	13.20%	46.00%
Debt/Equity ratio	0.02	0.02
Cost of debt	5.00%	5.00%

After-tax WACC	9.2%	12.1%


Selected WACC	10.6%

INV.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 INV.WA:

cost_of_equity (10.80%) = risk_free_rate (5.85%) + equity_risk_premium (7.30%) * adjusted_beta (0.54) + 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.