TOA.WA WACC - Weighted Average Cost of Capital
The WACC of Toya SA (TOA.WA) is 9.9%.
| Range | Selected | |
| Cost of equity | 9.2% - 11.7% | 10.45% |
| Tax rate | 20.1% - 20.4% | 20.25% |
| Cost of debt | 5.6% - 6.1% | 5.85% |
| WACC | 8.8% - 11.0% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.59 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 11.7% |
| Tax rate | 20.1% | 20.4% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 5.6% | 6.1% |
| After-tax WACC | 8.8% | 11.0% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TOA.WA | Toya SA | 0.11 | 0.79 | 0.73 |
| ALMGI.PA | Mg International SA | 0.16 | 0.61 | 0.54 |
| EIN3.DE | Einhell Germany AG | 0.65 | 0.56 | 0.37 |
| ELC.MI | Elica SpA | 1.07 | 0.61 | 0.33 |
| EM.MI | Emak SpA | 1.83 | 0.79 | 0.32 |
| IHEVA.IS | Ihlas Ev Aletleri Imalat Sanayi ve Ticaret AS | 0.03 | 0.7 | 0.68 |
| INDB.MI | Indel B SpA | 0.22 | 0.23 | 0.2 |
| SAB.MI | Sabaf SpA | 0.51 | 0.39 | 0.28 |
| SILVR.IS | Silverline Endustri ve Ticaret AS | 0.14 | 1.93 | 1.74 |
| SNG1L.VS | Snaige AB | 2.63 | 1.57 | 0.51 |
| Low | High | |
| Unlevered beta | 0.35 | 0.52 |
| Relevered beta | 0.39 | 0.57 |
| Adjusted relevered beta | 0.59 | 0.71 |
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 (10.45%) = 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.