VOT.WA WACC - Weighted Average Cost of Capital

The WACC of Votum SA (VOT.WA) is 10.6%.

The Cost of Equity of Votum SA (VOT.WA) is 10.85%.

The Cost of Debt of Votum SA (VOT.WA) is 5.10%.

	Range	Selected
Cost of equity	9.60% - 12.10%	10.85%
Tax rate	19.80% - 21.40%	20.60%
Cost of debt	4.10% - 6.10%	5.10%
WACC	9.3% - 11.8%	10.6%

WACC

VOT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.65	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.10%

Tax rate	19.80%	21.40%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.10%	6.10%

After-tax WACC	9.3%	11.8%


Selected WACC	10.6%

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 (10.85%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.65) + 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.