RAF.WA WACC - Weighted Average Cost of Capital

The WACC of Fabryka Obrabiarek Rafamet SA (RAF.WA) is 8.2%.

The Cost of Equity of Fabryka Obrabiarek Rafamet SA (RAF.WA) is 8.35%.

The Cost of Debt of Fabryka Obrabiarek Rafamet SA (RAF.WA) is 8.25%.

	Range	Selected
Cost of equity	7.50% - 9.20%	8.35%
Tax rate	10.90% - 14.60%	12.75%
Cost of debt	7.00% - 9.50%	8.25%
WACC	7.4% - 9.1%	8.2%

WACC

RAF.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.32	0.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	9.20%

Tax rate	10.90%	14.60%
Debt/Equity ratio	0.14	0.14
Cost of debt	7.00%	9.50%

After-tax WACC	7.4%	9.1%


Selected WACC	8.2%

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 (8.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.32) + 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.