KYK.AX WACC - Weighted Average Cost of Capital
The WACC of Kyckr Ltd (KYK.AX) is 5.2%.
| Range | Selected | |
| Cost of equity | 4.5% - 9.2% | 6.85% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.0% - 6.4% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | -0.01 | 0.6 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 4.5% | 9.2% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.0% | 6.4% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KYK.AX | Kyckr Ltd | 1.19 | 1.87 | 1.02 |
| CAG.AX | Cape Range Ltd | 0 | -0.77 | -0.77 |
| HSC.AX | HSC Technology Group Ltd | 0.22 | 0.57 | 0.49 |
| JXT.AX | Jaxsta Ltd | 0.08 | 0.51 | 0.48 |
| KNO.AX | Knosys Ltd | 0.03 | -0.3 | -0.3 |
| OLL.AX | Openlearning Ltd | 0.28 | -0.37 | -0.31 |
| PTG.AX | Proptech Group Ltd | 0.01 | 1.46 | 1.45 |
| SIS.AX | Simble Solutions Ltd | 0.09 | -0.74 | -0.7 |
| TYM.AX | TYMLEZ Group Ltd | 0.1 | -1.73 | -1.62 |
| WOO.AX | Wooboard Technologies Ltd | 0.95 | 1.75 | 1.05 |
| XPE.AX | XPED Ltd | 0.03 | 0.07 | 0.07 |
| Low | High | |
| Unlevered beta | -0.3 | 0.48 |
| Relevered beta | -0.51 | 0.4 |
| Adjusted relevered beta | -0.01 | 0.6 |
KYK.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 KYK.AX:
cost_of_equity (6.85%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (-0.01) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.