RTX.CO
Rtx A/S
Price:  
82 
DKK
Volume:  
4,137
Denmark | Communications Equipment

RTX.CO WACC - Weighted Average Cost of Capital

The WACC of Rtx A/S (RTX.CO) is 6.3%.

The Cost of Equity of Rtx A/S (RTX.CO) is 6.1%.
The Cost of Debt of Rtx A/S (RTX.CO) is 10.6%.

RangeSelected
Cost of equity5.2% - 7.0%6.1%
Tax rate20.6% - 21.1%20.85%
Cost of debt7.0% - 14.2%10.6%
WACC5.2% - 7.3%6.3%
WACC

RTX.CO WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.480.54
Additional risk adjustments0.0%0.5%
Cost of equity5.2%7.0%
Tax rate20.6%21.1%
Debt/Equity ratio
0.080.08
Cost of debt7.0%14.2%
After-tax WACC5.2%7.3%
Selected WACC6.3%

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.