RZR.TA WACC - Weighted Average Cost of Capital

The WACC of Razor Labs Ltd (RZR.TA) is 10.2%.

The Cost of Equity of Razor Labs Ltd (RZR.TA) is 10.80%.

The Cost of Debt of Razor Labs Ltd (RZR.TA) is 5.65%.

	Range	Selected
Cost of equity	9.70% - 11.90%	10.80%
Tax rate	2.00% - 8.00%	5.00%
Cost of debt	4.30% - 7.00%	5.65%
WACC	9.1% - 11.3%	10.2%

WACC

RZR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.79	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	11.90%

Tax rate	2.00%	8.00%
Debt/Equity ratio	0.12	0.12
Cost of debt	4.30%	7.00%

After-tax WACC	9.1%	11.3%


Selected WACC	10.2%

RZR.TA'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 RZR.TA:

cost_of_equity (10.80%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.79) + 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.