RES.WA WACC - Weighted Average Cost of Capital

The WACC of Resbud SE (RES.WA) is 10.7%.

The Cost of Equity of Resbud SE (RES.WA) is 15.45%.

The Cost of Debt of Resbud SE (RES.WA) is 5.35%.

	Range	Selected
Cost of equity	13.00% - 17.90%	15.45%
Tax rate	0.20% - 12.80%	6.50%
Cost of debt	4.00% - 6.70%	5.35%
WACC	8.9% - 12.4%	10.7%

WACC

RES.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.19	1.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.00%	17.90%

Tax rate	0.20%	12.80%
Debt/Equity ratio	0.83	0.83
Cost of debt	4.00%	6.70%

After-tax WACC	8.9%	12.4%


Selected WACC	10.7%

RES.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 RES.WA:

cost_of_equity (15.45%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.19) + 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.