VGO.WA WACC - Weighted Average Cost of Capital

The WACC of Vigo System SA (VGO.WA) is 9.2%.

The Cost of Equity of Vigo System SA (VGO.WA) is 9.55%.

The Cost of Debt of Vigo System SA (VGO.WA) is 7.35%.

	Range	Selected
Cost of equity	8.20% - 10.90%	9.55%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	4.00% - 10.70%	7.35%
WACC	7.7% - 10.7%	9.2%

WACC

VGO.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.43	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	10.90%

Tax rate	19.00%	19.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.00%	10.70%

After-tax WACC	7.7%	10.7%


Selected WACC	9.2%

VGO.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 VGO.WA:

cost_of_equity (9.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.43) + 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.