K2F.AX WACC - Weighted Average Cost of Capital
The WACC of K2FLY Ltd (K2F.AX) is 7.5%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.0% | 7.55% |
| Tax rate | 3.9% - 5.7% | 4.8% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 6.1% - 9.0% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.41 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.0% |
| Tax rate | 3.9% | 5.7% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 6.1% | 9.0% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| K2F.AX | K2FLY Ltd | 0 | 0.91 | 0.9 |
| AR9.AX | Archtis Ltd | 0.02 | -1.52 | -1.5 |
| CPT.AX | Cipherpoint Ltd | 0.07 | 0.92 | 0.87 |
| DTS.AX | Dragontail Systems Ltd | 0.1 | -0.95 | -0.87 |
| ENS.NZ | Enprise Group Ltd | 0.21 | 0.14 | 0.11 |
| FZO.AX | Family Zone Cyber Safety Ltd | 0.08 | 1.51 | 1.4 |
| HSC.AX | HSC Technology Group Ltd | 0.22 | 0.57 | 0.47 |
| JXT.AX | Jaxsta Ltd | 0.08 | 0.51 | 0.47 |
| KNO.AX | Knosys Ltd | 0.03 | -0.65 | -0.63 |
| PRO.AX | Prophecy International Holdings Ltd | 0.03 | 0.12 | 0.12 |
| Low | High | |
| Unlevered beta | 0.11 | 0.47 |
| Relevered beta | 0.12 | 0.48 |
| Adjusted relevered beta | 0.41 | 0.65 |
K2F.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 K2F.AX:
cost_of_equity (7.55%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.41) + 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.