TBL.WA WACC - Weighted Average Cost of Capital

The WACC of T-Bull SA (TBL.WA) is 7.0%.

The Cost of Equity of T-Bull SA (TBL.WA) is 7.75%.

The Cost of Debt of T-Bull SA (TBL.WA) is 5.00%.

	Range	Selected
Cost of equity	6.30% - 9.20%	7.75%
Tax rate	5.80% - 9.50%	7.65%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.9% - 8.0%	7.0%

WACC

TBL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.13	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	9.20%

Tax rate	5.80%	9.50%
Debt/Equity ratio	0.34	0.34
Cost of debt	5.00%	5.00%

After-tax WACC	5.9%	8.0%


Selected WACC	7.0%

TBL.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 TBL.WA:

cost_of_equity (7.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.13) + 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.