RAF.WA WACC - Weighted Average Cost of Capital
The WACC of Fabryka Obrabiarek Rafamet SA (RAF.WA) is 8.8%.
| Range | Selected | |
| Cost of equity | 8.3% - 9.8% | 9.05% |
| Tax rate | 11.9% - 14.6% | 13.25% |
| Cost of debt | 7.0% - 8.3% | 7.65% |
| WACC | 8.0% - 9.5% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.43 | 0.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 9.8% |
| Tax rate | 11.9% | 14.6% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 7.0% | 8.3% |
| After-tax WACC | 8.0% | 9.5% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RAF.WA | Fabryka Obrabiarek Rafamet SA | 0.13 | 2.17 | 1.96 |
| ALTRI.PA | Trilogiq SA | 0 | 0.56 | 0.56 |
| DESA.MC | Desarrollos Especiales de Sistemas de Anclajes SA | 0.65 | 0 | 0 |
| GJ.CO | Glunz & Jensen Holding A/S | 0.57 | 0.25 | 0.16 |
| HDR.WA | Przedsiebiorstwo Hydrauliki Silowej Hydrotor SA | 0.66 | 0.4 | 0.25 |
| HMSG.L | HMS Hydraulic Machines & Systems Group PLC | 3.57 | 0.14 | 0.03 |
| NBI.MC | NBI Bearings Europe SA | 0.84 | 0.18 | 0.1 |
| NFGAB.ST | Nordic Flanges Group AB (publ) | 1.73 | 0.41 | 0.16 |
| PEDU.SW | Perrot Duval Holding SA | 0.06 | 0.22 | 0.21 |
| SIXH.L | 600 Group PLC | 4.02 | -0.26 | -0.06 |
| TCN.L | Tricorn Group PLC | 3.92 | 0.74 | 0.17 |
| Low | High | |
| Unlevered beta | 0.16 | 0.17 |
| Relevered beta | 0.15 | 0.18 |
| Adjusted relevered beta | 0.43 | 0.45 |
RAF.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 RAF.WA:
cost_of_equity (9.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.43) + 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.