TLX.WA WACC - Weighted Average Cost of Capital

The WACC of Talex SA (TLX.WA) is 9.8%.

The Cost of Equity of Talex SA (TLX.WA) is 9.40%.

The Cost of Debt of Talex SA (TLX.WA) is 15.60%.

	Range	Selected
Cost of equity	8.00% - 10.80%	9.40%
Tax rate	17.00% - 21.00%	19.00%
Cost of debt	5.70% - 25.50%	15.60%
WACC	7.6% - 12.0%	9.8%

WACC

TLX.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.39	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	10.80%

Tax rate	17.00%	21.00%
Debt/Equity ratio	0.14	0.14
Cost of debt	5.70%	25.50%

After-tax WACC	7.6%	12.0%


Selected WACC	9.8%

TLX.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 TLX.WA:

cost_of_equity (9.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.39) + 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.