The WACC of Unibep SA (UNI.WA) is 10.1%.
| Range | Selected | |
| Cost of equity | 12.40% - 15.00% | 13.70% |
| Tax rate | 20.10% - 21.70% | 20.90% |
| Cost of debt | 7.00% - 9.70% | 8.35% |
| WACC | 8.9% - 11.2% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 1.08 | 1.16 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.40% | 15.00% |
| Tax rate | 20.10% | 21.70% |
| Debt/Equity ratio | 1.05 | 1.05 |
| Cost of debt | 7.00% | 9.70% |
| After-tax WACC | 8.9% | 11.2% |
| Selected WACC | 10.1% | |
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 UNI.WA:
cost_of_equity (13.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.08) + 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.