VOT.WA WACC - Weighted Average Cost of Capital

The WACC of Votum SA (VOT.WA) is 10.3%.

The Cost of Equity of Votum SA (VOT.WA) is 10.55%.

The Cost of Debt of Votum SA (VOT.WA) is 6.00%.

	Range	Selected
Cost of equity	9.00% - 12.10%	10.55%
Tax rate	19.40% - 21.00%	20.20%
Cost of debt	5.90% - 6.10%	6.00%
WACC	8.8% - 11.8%	10.3%

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	0.55	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	12.10%

Tax rate	19.40%	21.00%
Debt/Equity ratio	0.05	0.05
Cost of debt	5.90%	6.10%

After-tax WACC	8.8%	11.8%


Selected WACC	10.3%

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 (10.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.55) + 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.