UNT.WA WACC - Weighted Average Cost of Capital

The WACC of Unimot SA (UNT.WA) is 9.6%.

The Cost of Equity of Unimot SA (UNT.WA) is 9.55%.

The Cost of Debt of Unimot SA (UNT.WA) is 12.05%.

	Range	Selected
Cost of equity	8.60% - 10.50%	9.55%
Tax rate	20.10% - 20.80%	20.45%
Cost of debt	9.10% - 15.00%	12.05%
WACC	8.0% - 11.1%	9.6%

WACC

UNT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.49	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	10.50%

Tax rate	20.10%	20.80%
Debt/Equity ratio	0.85	0.85
Cost of debt	9.10%	15.00%

After-tax WACC	8.0%	11.1%


Selected WACC	9.6%

UNT.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 UNT.WA:

cost_of_equity (9.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.49) + 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.