VISN.TA WACC - Weighted Average Cost of Capital

The WACC of Vision Sigma Ltd (VISN.TA) is 6.3%.

The Cost of Equity of Vision Sigma Ltd (VISN.TA) is 12.60%.

The Cost of Debt of Vision Sigma Ltd (VISN.TA) is 5.00%.

	Range	Selected
Cost of equity	10.40% - 14.80%	12.60%
Tax rate	18.00% - 35.40%	26.70%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.0% - 6.7%	6.3%

WACC

VISN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.92	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	14.80%

Tax rate	18.00%	35.40%
Debt/Equity ratio	2.36	2.36
Cost of debt	5.00%	5.00%

After-tax WACC	6.0%	6.7%


Selected WACC	6.3%

VISN.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 VISN.TA:

cost_of_equity (12.60%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.92) + 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.