TRR.WA WACC - Weighted Average Cost of Capital

The WACC of Termo Rex SA (TRR.WA) is 8.6%.

The Cost of Equity of Termo Rex SA (TRR.WA) is 8.70%.

The Cost of Debt of Termo Rex SA (TRR.WA) is 5.35%.

	Range	Selected
Cost of equity	7.70% - 9.70%	8.70%
Tax rate	22.70% - 24.20%	23.45%
Cost of debt	4.00% - 6.70%	5.35%
WACC	7.6% - 9.6%	8.6%

WACC

TRR.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.35	0.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	9.70%

Tax rate	22.70%	24.20%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	6.70%

After-tax WACC	7.6%	9.6%


Selected WACC	8.6%

TRR.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 TRR.WA:

cost_of_equity (8.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.35) + 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.