VOT.WA WACC - Weighted Average Cost of Capital
The WACC of Votum SA (VOT.WA) is 10.6%.
| Range | Selected | |
| Cost of equity | 9.7% - 12.1% | 10.9% |
| Tax rate | 19.8% - 21.4% | 20.6% |
| Cost of debt | 4.1% - 6.1% | 5.1% |
| WACC | 9.4% - 11.8% | 10.6% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.66 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.7% | 12.1% |
| Tax rate | 19.8% | 21.4% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.1% | 6.1% |
| After-tax WACC | 9.4% | 11.8% |
| Selected WACC | 10.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VOT.WA | Votum SA | 0.05 | 0.53 | 0.51 |
| ASSI.MI | Assiteca SpA Internazionale di Brokeraggio Assicurativo | 0.2 | 0.6 | 0.52 |
| NET.MI | Net Insurance SpA | 0.1 | 0.24 | 0.22 |
| RAYSG.IS | Ray Sigorta AS | 0 | 0.98 | 0.98 |
| RQIH.L | Randall & Quilter Investment Holdings Ltd | 1231.13 | -0.41 | 0 |
| SJOVA.IC | Sjova-Almennar tryggingar hf | 0.02 | 1.01 | 1 |
| TLX.DE | Talanx AG | 0.31 | 0.98 | 0.78 |
| WTG.L | Watchstone Group PLC | 0 | 0.13 | 0.13 |
| HUIZ | Huize Holding Ltd | 0.31 | 0.51 | 0.41 |
| NXG.V | NexgenRx Inc | 0.03 | 1.06 | 1.04 |
| Low | High | |
| Unlevered beta | 0.47 | 0.62 |
| Relevered beta | 0.49 | 0.64 |
| Adjusted relevered beta | 0.66 | 0.76 |
VOT.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 VOT.WA:
cost_of_equity (10.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * 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.