STRS.TA WACC - Weighted Average Cost of Capital

The WACC of Strauss Group Ltd (STRS.TA) is 8.2%.

The Cost of Equity of Strauss Group Ltd (STRS.TA) is 8.85%.

The Cost of Debt of Strauss Group Ltd (STRS.TA) is 5.70%.

	Range	Selected
Cost of equity	8.00% - 9.70%	8.85%
Tax rate	22.50% - 22.80%	22.65%
Cost of debt	4.80% - 6.60%	5.70%
WACC	7.3% - 9.0%	8.2%

WACC

STRS.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.51	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	9.70%

Tax rate	22.50%	22.80%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.80%	6.60%

After-tax WACC	7.3%	9.0%


Selected WACC	8.2%

STRS.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 STRS.TA:

cost_of_equity (8.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.51) + 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.