VAR.WA WACC - Weighted Average Cost of Capital

The WACC of Varsav Game Studios SA (VAR.WA) is 10.2%.

The Cost of Equity of Varsav Game Studios SA (VAR.WA) is 10.15%.

The Cost of Debt of Varsav Game Studios SA (VAR.WA) is 13.95%.

	Range	Selected
Cost of equity	9.20% - 11.10%	10.15%
Tax rate	14.90% - 26.60%	20.75%
Cost of debt	5.40% - 22.50%	13.95%
WACC	8.2% - 12.2%	10.2%

WACC

VAR.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.58	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	11.10%

Tax rate	14.90%	26.60%
Debt/Equity ratio	0.26	0.26
Cost of debt	5.40%	22.50%

After-tax WACC	8.2%	12.2%


Selected WACC	10.2%

VAR.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 VAR.WA:

cost_of_equity (10.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.58) + 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.