WABERERS.BD WACC - Weighted Average Cost of Capital

The WACC of Waberer's International Nyrt (WABERERS.BD) is 9.0%.

The Cost of Equity of Waberer's International Nyrt (WABERERS.BD) is 16.05%.

The Cost of Debt of Waberer's International Nyrt (WABERERS.BD) is 5.65%.

	Range	Selected
Cost of equity	13.40% - 18.70%	16.05%
Tax rate	21.20% - 22.20%	21.70%
Cost of debt	4.00% - 7.30%	5.65%
WACC	7.2% - 10.9%	9.0%

WACC

WABERERS.BD WACC calculation

Category	Low	High

Long-term bond rate	6.4%	6.9%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.89	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	18.70%

Tax rate	21.20%	22.20%
Debt/Equity ratio	1.52	1.52
Cost of debt	4.00%	7.30%

After-tax WACC	7.2%	10.9%


Selected WACC	9.0%

WABERERS.BD'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 WABERERS.BD:

cost_of_equity (16.05%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.89) + 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.