TLSY.TA WACC - Weighted Average Cost of Capital

The WACC of Telsys Ltd (TLSY.TA) is 10.6%.

The Cost of Equity of Telsys Ltd (TLSY.TA) is 10.65%.

The Cost of Debt of Telsys Ltd (TLSY.TA) is 6.80%.

	Range	Selected
Cost of equity	9.10% - 12.20%	10.65%
Tax rate	9.20% - 9.30%	9.25%
Cost of debt	5.40% - 8.20%	6.80%
WACC	9.0% - 12.1%	10.6%

WACC

TLSY.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.7	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	12.20%

Tax rate	9.20%	9.30%
Debt/Equity ratio	0.02	0.02
Cost of debt	5.40%	8.20%

After-tax WACC	9.0%	12.1%


Selected WACC	10.6%

TLSY.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 TLSY.TA:

cost_of_equity (10.65%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.7) + 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.