STRS.TA WACC - Weighted Average Cost of Capital
The WACC of Strauss Group Ltd (STRS.TA) is 8.6%.
| Range | Selected | |
| Cost of equity | 8.6% - 11.0% | 9.8% |
| Tax rate | 21.4% - 22.4% | 21.9% |
| Cost of debt | 4.0% - 5.9% | 4.95% |
| WACC | 7.5% - 9.7% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.62 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 11.0% |
| Tax rate | 21.4% | 22.4% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.0% | 5.9% |
| After-tax WACC | 7.5% | 9.7% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| STRS.TA | Strauss Group Ltd | 0.25 | 0.87 | 0.73 |
| 1112.HK | Health and Happiness (H&H) International Holdings Ltd | 1.43 | 0.91 | 0.43 |
| 1717.HK | Ausnutria Dairy Corp Ltd | 0.66 | 0.73 | 0.49 |
| 2201.T | Morinaga & Co Ltd | 0.1 | 0.17 | 0.16 |
| 2229.T | Calbee Inc | 0.1 | 0.24 | 0.22 |
| 271560.KS | Orion Corp | 0.01 | 0.63 | 0.63 |
| 2811.T | Kagome Co Ltd | 0.27 | 0.6 | 0.49 |
| 600873.SS | MeiHua Holdings Group Co Ltd | 0.17 | 0.84 | 0.74 |
| CHAM.TA | Cham Foods Israel Ltd | 0.07 | 0.28 | 0.27 |
| MYOR.JK | Mayora Indah Tbk PT | 0.17 | 0.81 | 0.71 |
| SMNIN.TA | Shemen Industries Ltd | 0 | 0.01 | 0.01 |
| Low | High | |
| Unlevered beta | 0.43 | 0.49 |
| Relevered beta | 0.43 | 0.58 |
| Adjusted relevered beta | 0.62 | 0.72 |
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 (9.80%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.62) + 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.