RNK.WA WACC - Weighted Average Cost of Capital

The WACC of Rank Progress SA (RNK.WA) is 6.5%.

The Cost of Equity of Rank Progress SA (RNK.WA) is 10.75%.

The Cost of Debt of Rank Progress SA (RNK.WA) is 5.35%.

	Range	Selected
Cost of equity	8.80% - 12.70%	10.75%
Tax rate	29.30% - 34.20%	31.75%
Cost of debt	4.00% - 6.70%	5.35%
WACC	5.2% - 7.8%	6.5%

WACC

RNK.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.52	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	12.70%

Tax rate	29.30%	34.20%
Debt/Equity ratio	1.48	1.48
Cost of debt	4.00%	6.70%

After-tax WACC	5.2%	7.8%


Selected WACC	6.5%

RNK.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 RNK.WA:

cost_of_equity (10.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.52) + 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.