PAT.WA WACC - Weighted Average Cost of Capital

The WACC of Patentus SA (PAT.WA) is 9.9%.

The Cost of Equity of Patentus SA (PAT.WA) is 10.20%.

The Cost of Debt of Patentus SA (PAT.WA) is 5.15%.

	Range	Selected
Cost of equity	9.30% - 11.10%	10.20%
Tax rate	11.20% - 11.60%	11.40%
Cost of debt	4.20% - 6.10%	5.15%
WACC	8.9% - 10.8%	9.9%

WACC

PAT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.59	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	11.10%

Tax rate	11.20%	11.60%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.20%	6.10%

After-tax WACC	8.9%	10.8%


Selected WACC	9.9%

PAT.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 PAT.WA:

cost_of_equity (10.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.59) + 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.