RDL.WA WACC - Weighted Average Cost of Capital

The WACC of Radpol SA (RDL.WA) is 10.7%.

The Cost of Equity of Radpol SA (RDL.WA) is 12.30%.

The Cost of Debt of Radpol SA (RDL.WA) is 6.25%.

	Range	Selected
Cost of equity	11.30% - 13.30%	12.30%
Tax rate	19.50% - 20.70%	20.10%
Cost of debt	4.60% - 7.90%	6.25%
WACC	9.7% - 11.8%	10.7%

WACC

RDL.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.73	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	13.30%

Tax rate	19.50%	20.70%
Debt/Equity ratio	0.27	0.27
Cost of debt	4.60%	7.90%

After-tax WACC	9.7%	11.8%


Selected WACC	10.7%

RDL.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 RDL.WA:

cost_of_equity (12.30%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * adjusted_beta (0.73) + 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.