TRI.WA WACC - Weighted Average Cost of Capital
The WACC of Triton Development SA (TRI.WA) is 8.1%.
| Range | Selected | |
| Cost of equity | 7.7% - 10.4% | 9.05% |
| Tax rate | 5.3% - 9.8% | 7.55% |
| Cost of debt | 5.0% - 7.0% | 6% |
| WACC | 6.9% - 9.4% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.34 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 10.4% |
| Tax rate | 5.3% | 9.8% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 5.0% | 7.0% |
| After-tax WACC | 6.9% | 9.4% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TRI.WA | Triton Development SA | 0.35 | 0.29 | 0.22 |
| ASPL.L | Aseana Properties Ltd | 1.54 | -0.55 | -0.22 |
| CNN.L | Caledonian Trust PLC | 0.97 | 0.53 | 0.28 |
| DCI.L | Dolphin Capital Investors Ltd | 0.42 | -0.13 | -0.09 |
| EDI.WA | ED Invest SA | 0 | 0.25 | 0.25 |
| HMI.WA | HM Inwest SA | 0.54 | -0.07 | -0.05 |
| JWC.WA | JW Construction Holding SA | 0.94 | 0.03 | 0.01 |
| KALD.IC | Kaldalon hf | 1.5 | 0.6 | 0.25 |
| LKD.WA | Lokum Deweloper SA | 0.2 | 0.01 | 0.01 |
| SOLON.OL | Solon Eiendom ASA | 1.24 | 0.77 | 0.36 |
| Low | High | |
| Unlevered beta | 0.01 | 0.23 |
| Relevered beta | 0.01 | 0.3 |
| Adjusted relevered beta | 0.34 | 0.53 |
TRI.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 TRI.WA:
cost_of_equity (9.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.34) + 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.