VVD.WA WACC - Weighted Average Cost of Capital

The WACC of Vivid Games SA (VVD.WA) is 8.2%.

The Cost of Equity of Vivid Games SA (VVD.WA) is 8.30%.

The Cost of Debt of Vivid Games SA (VVD.WA) is 6.90%.

	Range	Selected
Cost of equity	7.40% - 9.20%	8.30%
Tax rate	1.00% - 1.90%	1.45%
Cost of debt	6.40% - 7.40%	6.90%
WACC	7.4% - 9.1%	8.2%

WACC

VVD.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.31	0.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.40%	9.20%

Tax rate	1.00%	1.90%
Debt/Equity ratio	0.08	0.08
Cost of debt	6.40%	7.40%

After-tax WACC	7.4%	9.1%


Selected WACC	8.2%

VVD.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 VVD.WA:

cost_of_equity (8.30%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.31) + 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.