TNY.AX WACC - Weighted Average Cost of Capital
The WACC of Tinybeans Group Ltd (TNY.AX) is 8.1%.
| Range | Selected | |
| Cost of equity | 7.6% - 10.7% | 9.15% |
| Tax rate | 0.0% - 0.0% | 0% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 7.3% - 8.9% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.7 | 0.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 10.7% |
| Tax rate | 0.0% | 0.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 7.3% | 8.9% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TNY.AX | Tinybeans Group Ltd | 0.86 | 0.58 | 0.31 |
| 1736.HK | China Parenting Network Holdings Ltd | 1.31 | 0.68 | 0.29 |
| 2978.T | Tsukuruba Inc | 0.24 | 0.21 | 0.17 |
| 4387.T | ZUU Co Ltd | 0.07 | 0.51 | 0.47 |
| AD1.AX | AD1 Holdings Ltd | 0.46 | 0.63 | 0.43 |
| CAR.AX | Carsales.Com Ltd | 0.1 | 1.21 | 1.1 |
| DHG.AX | Domain Holdings Australia Ltd | 0.07 | -0.46 | -0.43 |
| HPG.AX | Hipages Group Holdings Ltd | 0.08 | 0.74 | 0.68 |
| RNT.AX | Rent.com.au Ltd | 0.01 | -0.3 | -0.3 |
| SEK.AX | Seek Ltd | 0.18 | 1.17 | 0.99 |
| SPA.AX | Spacetalk Ltd | 0.42 | 0.34 | 0.24 |
| Low | High | |
| Unlevered beta | 0.29 | 0.43 |
| Relevered beta | 0.55 | 0.9 |
| Adjusted relevered beta | 0.7 | 0.93 |
TNY.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 TNY.AX:
cost_of_equity (9.15%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * 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.