UNIT.TA WACC - Weighted Average Cost of Capital

The WACC of Unitronics 1989 RG Ltd (UNIT.TA) is 10.7%.

The Cost of Equity of Unitronics 1989 RG Ltd (UNIT.TA) is 10.85%.

The Cost of Debt of Unitronics 1989 RG Ltd (UNIT.TA) is 5.40%.

	Range	Selected
Cost of equity	9.30% - 12.40%	10.85%
Tax rate	16.30% - 18.20%	17.25%
Cost of debt	5.40% - 5.40%	5.40%
WACC	9.2% - 12.3%	10.7%

WACC

UNIT.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.72	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.40%

Tax rate	16.30%	18.20%
Debt/Equity ratio	0.01	0.01
Cost of debt	5.40%	5.40%

After-tax WACC	9.2%	12.3%


Selected WACC	10.7%

UNIT.TA'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 UNIT.TA:

cost_of_equity (10.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.72) + 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.