RLCO.TA WACC - Weighted Average Cost of Capital

The WACC of Ralco Agencies Ltd (RLCO.TA) is 10.6%.

The Cost of Equity of Ralco Agencies Ltd (RLCO.TA) is 11.10%.

The Cost of Debt of Ralco Agencies Ltd (RLCO.TA) is 5.00%.

	Range	Selected
Cost of equity	9.40% - 12.80%	11.10%
Tax rate	22.90% - 23.10%	23.00%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.0% - 12.2%	10.6%

WACC

RLCO.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.75	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	12.80%

Tax rate	22.90%	23.10%
Debt/Equity ratio	0.07	0.07
Cost of debt	5.00%	5.00%

After-tax WACC	9.0%	12.2%


Selected WACC	10.6%

RLCO.TA'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 RLCO.TA:

cost_of_equity (11.10%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.75) + 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.