TFL.AX WACC - Weighted Average Cost of Capital
The WACC of Tasfoods Ltd (TFL.AX) is 4.1%.
| Range | Selected | |
| Cost of equity | 6.9% - 10.7% | 8.8% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 4.7% | 4.35% |
| WACC | 3.5% - 4.6% | 4.1% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.56 | 0.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 10.7% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 4.7 | 4.7 |
| Cost of debt | 4.0% | 4.7% |
| After-tax WACC | 3.5% | 4.6% |
| Selected WACC | 4.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TFL.AX | Tasfoods Ltd | 4.7 | 0.5 | 0.12 |
| 514197.BO | S & T Corporation Ltd | 0.15 | -0.87 | -0.78 |
| ATA.VN | NTACO Corp | 53.53 | 0.97 | 0.03 |
| FFI.AX | FFI Holdings Ltd | 0.09 | -0.64 | -0.61 |
| FNP.AX | Freedom Foods Group Ltd | 5.56 | 0.01 | 0 |
| FOD.AX | Food Revolution Group Ltd | 0.57 | 0.2 | 0.15 |
| KTD.AX | Keytone Dairy Corporation Ltd | 0.5 | 1.07 | 0.8 |
| LV1.AX | Live Verdure Ltd | 0 | 0.3 | 0.3 |
| NUC.AX | Nuchev Ltd | 0.01 | 2.07 | 2.05 |
| NZS.AX | New Zealand Coastal Seafoods Ltd | 0.3 | 1.6 | 1.32 |
| Low | High | |
| Unlevered beta | 0.08 | 0.21 |
| Relevered beta | 0.34 | 0.9 |
| Adjusted relevered beta | 0.56 | 0.93 |
TFL.AX'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 TFL.AX:
cost_of_equity (8.80%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.