VTNA.TA WACC - Weighted Average Cost of Capital

The WACC of Vitania Ltd (VTNA.TA) is 7.3%.

The Cost of Equity of Vitania Ltd (VTNA.TA) is 10.95%.

The Cost of Debt of Vitania Ltd (VTNA.TA) is 5.30%.

	Range	Selected
Cost of equity	9.40% - 12.50%	10.95%
Tax rate	13.70% - 14.10%	13.90%
Cost of debt	4.00% - 6.60%	5.30%
WACC	6.1% - 8.6%	7.3%

WACC

VTNA.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.75	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	12.50%

Tax rate	13.70%	14.10%
Debt/Equity ratio	1.3	1.3
Cost of debt	4.00%	6.60%

After-tax WACC	6.1%	8.6%


Selected WACC	7.3%

VTNA.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 VTNA.TA:

cost_of_equity (10.95%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.75) + 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.