TTA.AX WACC - Weighted Average Cost of Capital
The WACC of TTA Holdings Ltd (TTA.AX) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.6% | 7.35% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.6% - 4.6% | 4.6% |
| WACC | 6.1% - 8.6% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.41 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.6% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.6% | 4.6% |
| After-tax WACC | 6.1% | 8.6% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TTA.AX | TTA Holdings Ltd | 0.01 | -13.41 | -13.35 |
| 501477.BO | Muller and Phipps (India) Ltd | 0.06 | 0.09 | 0.09 |
| 539220.BO | Mishka Exim Ltd | 0 | 0 | 0 |
| 539884.BO | Darshan Orna Ltd | 0.31 | 0.33 | 0.27 |
| BAP.AX | Bapcor Ltd | 0.39 | 0.96 | 0.75 |
| BDB.VN | Binh Dinh Book and Equipment JSC | 0.46 | -0.29 | -0.22 |
| FUN.AX | Funtastic Ltd | 0.14 | 1.9 | 1.73 |
| JAT.AX | Jatcorp Ltd | 0.16 | 0.63 | 0.57 |
| NTD.AX | National Tyre & Wheel Ltd | 5.16 | 0.62 | 0.13 |
| SNL.AX | Supply Network Ltd | 0.03 | 0.57 | 0.56 |
| VASA.NS | Vasa Retail and Overseas Ltd | 9.03 | 0.76 | 0.1 |
| Low | High | |
| Unlevered beta | 0.1 | 0.27 |
| Relevered beta | 0.12 | 0.39 |
| Adjusted relevered beta | 0.41 | 0.59 |
TTA.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 TTA.AX:
cost_of_equity (7.35%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.41) + 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.