VCTR.TA WACC - Weighted Average Cost of Capital

The WACC of Victory Supermarket Chain Ltd (VCTR.TA) is 7.1%.

The Cost of Equity of Victory Supermarket Chain Ltd (VCTR.TA) is 10.30%.

The Cost of Debt of Victory Supermarket Chain Ltd (VCTR.TA) is 7.05%.

	Range	Selected
Cost of equity	8.90% - 11.70%	10.30%
Tax rate	22.40% - 22.70%	22.55%
Cost of debt	4.00% - 10.10%	7.05%
WACC	5.0% - 9.1%	7.1%

WACC

VCTR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.66	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	11.70%

Tax rate	22.40%	22.70%
Debt/Equity ratio	1.98	1.98
Cost of debt	4.00%	10.10%

After-tax WACC	5.0%	9.1%


Selected WACC	7.1%

VCTR.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 VCTR.TA:

cost_of_equity (10.30%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.66) + 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.