TLS.WA WACC - Weighted Average Cost of Capital

The WACC of Telestrada SA (TLS.WA) is 9.1%.

The Cost of Equity of Telestrada SA (TLS.WA) is 12.10%.

The Cost of Debt of Telestrada SA (TLS.WA) is 8.00%.

	Range	Selected
Cost of equity	10.90% - 13.30%	12.10%
Tax rate	20.10% - 25.20%	22.65%
Cost of debt	6.10% - 9.90%	8.00%
WACC	7.9% - 10.4%	9.1%

WACC

TLS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.85	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	13.30%

Tax rate	20.10%	25.20%
Debt/Equity ratio	1	1
Cost of debt	6.10%	9.90%

After-tax WACC	7.9%	10.4%


Selected WACC	9.1%

TLS.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 TLS.WA:

cost_of_equity (12.10%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.85) + 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.