RNC.WA WACC - Weighted Average Cost of Capital

The WACC of Reino Capital SA (RNC.WA) is 10.4%.

The Cost of Equity of Reino Capital SA (RNC.WA) is 9.55%.

The Cost of Debt of Reino Capital SA (RNC.WA) is 17.50%.

	Range	Selected
Cost of equity	7.70% - 11.40%	9.55%
Tax rate	13.20% - 22.20%	17.70%
Cost of debt	9.50% - 25.50%	17.50%
WACC	7.8% - 13.0%	10.4%

WACC

RNC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.35	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	11.40%

Tax rate	13.20%	22.20%
Debt/Equity ratio	0.24	0.24
Cost of debt	9.50%	25.50%

After-tax WACC	7.8%	13.0%


Selected WACC	10.4%

RNC.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 RNC.WA:

cost_of_equity (9.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.35) + 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.