RGS.AX WACC - Weighted Average Cost of Capital
The WACC of Regeneus Ltd (RGS.AX) is 5.7%.
| Range | Selected | |
| Cost of equity | 4.2% - 7.5% | 5.85% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.1% - 7.3% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.04 | 0.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.2% | 7.5% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.1% | 7.3% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RGS.AX | Regeneus Ltd | 0.06 | -2.71 | -2.61 |
| 1AD.AX | Adalta Ltd | 1.26 | 1.24 | 0.66 |
| ACW.AX | Actinogen Medical Ltd | 0.01 | -0.4 | -0.4 |
| ATX.AX | Amplia Therapeutics Ltd | 0 | -0.23 | -0.23 |
| BIT.AX | Biotron Ltd | 0 | 2.26 | 2.25 |
| CSL.AX | CSL Ltd | 0.16 | 0.46 | 0.42 |
| DVL.AX | dorsaVi Ltd | 0.09 | 1.64 | 1.55 |
| DXB.AX | Dimerix Ltd | 0 | 2.91 | 2.91 |
| NC6.AX | Nanollose Ltd | 0 | -0.87 | -0.87 |
| OCC.AX | Orthocell Ltd | 0 | 2.08 | 2.07 |
| VBS.AX | Vectus Biosystems Ltd | 0.01 | 0.05 | 0.05 |
| Low | High | |
| Unlevered beta | 0.05 | 0.66 |
| Relevered beta | -0.43 | 0.12 |
| Adjusted relevered beta | 0.04 | 0.41 |
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.