URS.WA WACC - Weighted Average Cost of Capital

The WACC of Ursus SA (URS.WA) is 5.8%.

The Cost of Equity of Ursus SA (URS.WA) is 18.10%.

The Cost of Debt of Ursus SA (URS.WA) is 5.50%.

	Range	Selected
Cost of equity	15.00% - 21.20%	18.10%
Tax rate	5.00% - 7.80%	6.40%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.4% - 7.2%	5.8%

WACC

URS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.5	2

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.00%	21.20%

Tax rate	5.00%	7.80%
Debt/Equity ratio	18.95	18.95
Cost of debt	4.00%	7.00%

After-tax WACC	4.4%	7.2%


Selected WACC	5.8%

URS.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 URS.WA:

cost_of_equity (18.10%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.5) + 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.