TYR.AX WACC - Weighted Average Cost of Capital

The WACC of Tyro Payments Ltd (TYR.AX) is 9.1%.

The Cost of Equity of Tyro Payments Ltd (TYR.AX) is 9.40%.

The Cost of Debt of Tyro Payments Ltd (TYR.AX) is 5.50%.

	Range	Selected
Cost of equity	7.80% - 11.00%	9.40%
Tax rate	0.10% - 6.10%	3.10%
Cost of debt	4.00% - 7.00%	5.50%
WACC	7.6% - 10.7%	9.1%

WACC

TYR.AX WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.74	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	11.00%

Tax rate	0.10%	6.10%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.00%	7.00%

After-tax WACC	7.6%	10.7%


Selected WACC	9.1%

TYR.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 TYR.AX:

cost_of_equity (9.40%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.74) + 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.