TOA.WA WACC - Weighted Average Cost of Capital

The WACC of Toya SA (TOA.WA) is 10.0%.

The Cost of Equity of Toya SA (TOA.WA) is 10.70%.

The Cost of Debt of Toya SA (TOA.WA) is 5.85%.

	Range	Selected
Cost of equity	9.30% - 12.10%	10.70%
Tax rate	20.10% - 20.40%	20.25%
Cost of debt	5.60% - 6.10%	5.85%
WACC	8.7% - 11.2%	10.0%

WACC

TOA.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.59	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.10%

Tax rate	20.10%	20.40%
Debt/Equity ratio	0.13	0.13
Cost of debt	5.60%	6.10%

After-tax WACC	8.7%	11.2%


Selected WACC	10.0%

TOA.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 TOA.WA:

cost_of_equity (10.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.59) + 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.