WHF.AX
Whitefield Ltd
Price:  
5.6 
AUD
Volume:  
25,316
Australia | Finance and Insurance

WHF.AX WACC - Weighted Average Cost of Capital

The WACC of Whitefield Ltd (WHF.AX) is 8.2%.

The Cost of Equity of Whitefield Ltd (WHF.AX) is 11.65%.
The Cost of Debt of Whitefield Ltd (WHF.AX) is 5%.

RangeSelected
Cost of equity10.1% - 13.2%11.65%
Tax rate5.2% - 5.4%5.3%
Cost of debt5.0% - 5.0%5%
WACC7.4% - 9.0%8.2%
WACC

WHF.AX WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium5.1%6.1%
Adjusted beta1.181.34
Additional risk adjustments0.0%0.5%
Cost of equity10.1%13.2%
Tax rate5.2%5.4%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC7.4%9.0%
Selected WACC8.2%

WHF.AX WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.560.72
Relevered beta1.271.51
Adjusted relevered beta1.181.34

WHF.AX'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 WHF.AX:

cost_of_equity (11.65%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.18) + 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.