RON.WA WACC - Weighted Average Cost of Capital

The WACC of Ronson Development SE (RON.WA) is 10.7%.

The Cost of Equity of Ronson Development SE (RON.WA) is 14.30%.

The Cost of Debt of Ronson Development SE (RON.WA) is 6.65%.

	Range	Selected
Cost of equity	12.30% - 16.30%	14.30%
Tax rate	20.00% - 20.80%	20.40%
Cost of debt	4.70% - 8.60%	6.65%
WACC	8.9% - 12.5%	10.7%

WACC

RON.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.92	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	16.30%

Tax rate	20.00%	20.80%
Debt/Equity ratio	0.66	0.66
Cost of debt	4.70%	8.60%

After-tax WACC	8.9%	12.5%


Selected WACC	10.7%

RON.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 RON.WA:

cost_of_equity (14.30%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * adjusted_beta (0.92) + 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.