WHH.WA WACC - Weighted Average Cost of Capital
The WACC of Werth Holz SA (WHH.WA) is 7.5%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.6% | 9.2% |
| Tax rate | 18.2% - 22.8% | 20.5% |
| Cost of debt | 4.0% - 10.7% | 7.35% |
| WACC | 5.5% - 9.4% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.36 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.6% |
| Tax rate | 18.2% | 22.8% |
| Debt/Equity ratio | 1.06 | 1.06 |
| Cost of debt | 4.0% | 10.7% |
| After-tax WACC | 5.5% | 9.4% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WHH.WA | Werth Holz SA | 1.06 | 0.13 | 0.07 |
| ALCES.PA | Cesar SA | 26.3 | -0.79 | -0.04 |
| ALPDX.PA | Piscines Desjoyaux SA | 0.34 | 0.47 | 0.37 |
| CATG.PA | Catana Group SA | 0.44 | 1.06 | 0.79 |
| CCT.L | Character Group PLC | 0.05 | -0.1 | -0.1 |
| H9Y.DE | HanseYachts AG | 0.57 | -0.84 | -0.58 |
| HRN.L | Hornby PLC | 0.72 | -0.54 | -0.34 |
| MNC.WA | Mennica Polska SA | 0.15 | 0.25 | 0.22 |
| TND.L | Tandem Group PLC | 0.61 | 0.24 | 0.16 |
| ULC.DE | United Labels AG | 0.7 | 0.37 | 0.24 |
| Low | High | |
| Unlevered beta | 0.03 | 0.19 |
| Relevered beta | 0.04 | 0.34 |
| Adjusted relevered beta | 0.36 | 0.56 |
WHH.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 WHH.WA:
cost_of_equity (9.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.36) + 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.