RTX.CO WACC - Weighted Average Cost of Capital
The WACC of Rtx A/S (RTX.CO) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.0% | 6.1% |
| Tax rate | 20.6% - 21.1% | 20.85% |
| Cost of debt | 7.0% - 14.2% | 10.6% |
| WACC | 5.2% - 7.3% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.48 | 0.54 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.0% |
| Tax rate | 20.6% | 21.1% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 7.0% | 14.2% |
| After-tax WACC | 5.2% | 7.3% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RTX.CO | Rtx A/S | 0.08 | 0.06 | 0.05 |
| ALMIC.PA | Micropole SA | 0.34 | 0.02 | 0.02 |
| ALMUN.PA | Munic SA | 1.11 | 0.33 | 0.18 |
| ATEME.PA | Ateme SA | 0.58 | 0.14 | 0.1 |
| BVC.L | Batm Advanced Communications Ltd | 0.09 | 0.32 | 0.3 |
| EKI.PA | Ekinops SA | 0.28 | 0.62 | 0.51 |
| EVS.BR | Evs Broadcast Equipment SA | 0.03 | 0.81 | 0.79 |
| PARRO.PA | Parrot SA | 0.03 | 0.66 | 0.65 |
| RBLN B.CO | Roblon A/S | 0.19 | 0.26 | 0.23 |
| TAGM B.ST | TagMaster AB | 0.67 | 0.44 | 0.29 |
| Low | High | |
| Unlevered beta | 0.21 | 0.29 |
| Relevered beta | 0.22 | 0.31 |
| Adjusted relevered beta | 0.48 | 0.54 |
RTX.CO'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 RTX.CO:
cost_of_equity (6.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + 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.