RNK.WA WACC - Weighted Average Cost of Capital

The WACC of Rank Progress SA (RNK.WA) is 9.2%.

The Cost of Equity of Rank Progress SA (RNK.WA) is 8.35%.

The Cost of Debt of Rank Progress SA (RNK.WA) is 14.75%.

	Range	Selected
Cost of equity	7.60% - 9.10%	8.35%
Tax rate	29.30% - 34.20%	31.75%
Cost of debt	4.00% - 25.50%	14.75%
WACC	4.7% - 13.7%	9.2%

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	0.33	0.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	9.10%

Tax rate	29.30%	34.20%
Debt/Equity ratio	1.53	1.53
Cost of debt	4.00%	25.50%

After-tax WACC	4.7%	13.7%


Selected WACC	9.2%

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 (8.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.33) + 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.