WHH.WA WACC - Weighted Average Cost of Capital

The WACC of Werth Holz SA (WHH.WA) is 7.8%.

The Cost of Equity of Werth Holz SA (WHH.WA) is 8.50%.

The Cost of Debt of Werth Holz SA (WHH.WA) is 9.00%.

	Range	Selected
Cost of equity	7.10% - 9.90%	8.50%
Tax rate	18.20% - 22.80%	20.50%
Cost of debt	4.00% - 14.00%	9.00%
WACC	5.1% - 10.4%	7.8%

WACC

WHH.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.25	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	9.90%

Tax rate	18.20%	22.80%
Debt/Equity ratio	1.06	1.06
Cost of debt	4.00%	14.00%

After-tax WACC	5.1%	10.4%


Selected WACC	7.8%

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 (8.50%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.25) + 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.