KSG.WA WACC - Weighted Average Cost of Capital

The WACC of KSG Agro SA (KSG.WA) is 8.4%.

The Cost of Equity of KSG Agro SA (KSG.WA) is 11.90%.

The Cost of Debt of KSG Agro SA (KSG.WA) is 6.95%.

	Range	Selected
Cost of equity	9.90% - 13.90%	11.90%
Tax rate	0.20% - 0.50%	0.35%
Cost of debt	6.20% - 7.70%	6.95%
WACC	7.3% - 9.5%	8.4%

WACC

KSG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.7	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	13.90%

Tax rate	0.20%	0.50%
Debt/Equity ratio	2.38	2.38
Cost of debt	6.20%	7.70%

After-tax WACC	7.3%	9.5%


Selected WACC	8.4%

KSG.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 KSG.WA:

cost_of_equity (11.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.7) + 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.