RGS.AX
Regeneus Ltd
Price:  
0.52 
AUD
Volume:  
8,674
Australia | Biotechnology

RGS.AX WACC - Weighted Average Cost of Capital

The WACC of Regeneus Ltd (RGS.AX) is 5.7%.

The Cost of Equity of Regeneus Ltd (RGS.AX) is 5.85%.
The Cost of Debt of Regeneus Ltd (RGS.AX) is 5%.

RangeSelected
Cost of equity4.2% - 7.5%5.85%
Tax rate30.0% - 30.0%30%
Cost of debt5.0% - 5.0%5%
WACC4.1% - 7.3%5.7%
WACC

RGS.AX WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium5.1%6.1%
Adjusted beta0.040.41
Additional risk adjustments0.0%0.5%
Cost of equity4.2%7.5%
Tax rate30.0%30.0%
Debt/Equity ratio
0.060.06
Cost of debt5.0%5.0%
After-tax WACC4.1%7.3%
Selected WACC5.7%

RGS.AX'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 RGS.AX:

cost_of_equity (5.85%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.04) + 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.