RWL.WA WACC - Weighted Average Cost of Capital

The WACC of Rawlplug SA (RWL.WA) is 8.2%.

The Cost of Equity of Rawlplug SA (RWL.WA) is 10.95%.

The Cost of Debt of Rawlplug SA (RWL.WA) is 5.90%.

	Range	Selected
Cost of equity	9.30% - 12.60%	10.95%
Tax rate	17.90% - 19.20%	18.55%
Cost of debt	4.10% - 7.70%	5.90%
WACC	6.6% - 9.7%	8.2%

WACC

RWL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.59	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.60%

Tax rate	17.90%	19.20%
Debt/Equity ratio	0.8	0.8
Cost of debt	4.10%	7.70%

After-tax WACC	6.6%	9.7%


Selected WACC	8.2%

RWL.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 RWL.WA:

cost_of_equity (10.95%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.59) + 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.