VCTR.TA WACC - Weighted Average Cost of Capital

The WACC of Victory Supermarket Chain Ltd (VCTR.TA) is 7.9%.

The Cost of Equity of Victory Supermarket Chain Ltd (VCTR.TA) is 10.10%.

The Cost of Debt of Victory Supermarket Chain Ltd (VCTR.TA) is 8.65%.

	Range	Selected
Cost of equity	8.90% - 11.30%	10.10%
Tax rate	22.40% - 22.70%	22.55%
Cost of debt	4.00% - 13.30%	8.65%
WACC	5.1% - 10.7%	7.9%

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	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	11.30%

Tax rate	22.40%	22.70%
Debt/Equity ratio	1.88	1.88
Cost of debt	4.00%	13.30%

After-tax WACC	5.1%	10.7%


Selected WACC	7.9%

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 (10.10%) = 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.