KSG.WA WACC - Weighted Average Cost of Capital

The WACC of KSG Agro SA (KSG.WA) is 10.9%.

The Cost of Equity of KSG Agro SA (KSG.WA) is 12.45%.

The Cost of Debt of KSG Agro SA (KSG.WA) is 9.85%.

	Range	Selected
Cost of equity	10.20% - 14.70%	12.45%
Tax rate	0.10% - 0.30%	0.20%
Cost of debt	9.00% - 10.70%	9.85%
WACC	9.5% - 12.3%	10.9%

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	0.74	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	14.70%

Tax rate	0.10%	0.30%
Debt/Equity ratio	1.44	1.44
Cost of debt	9.00%	10.70%

After-tax WACC	9.5%	12.3%


Selected WACC	10.9%

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 (12.45%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.74) + 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.