WHK.AX WACC - Weighted Average Cost of Capital
The WACC of WhiteHawk Ltd (WHK.AX) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.4% - 8.3% | 7.35% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 6.3% - 8.2% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.46 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 8.3% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 6.3% | 8.2% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WHK.AX | WhiteHawk Ltd | 0.02 | -3.45 | -3.41 |
| 3900.T | CrowdWorks Inc | 0.12 | 0.84 | 0.77 |
| BPH.AX | BPH Energy Ltd | 0.01 | 0.12 | 0.12 |
| CL8.AX | Carly Holdings Ltd | 3.32 | 0.76 | 0.23 |
| DW8.AX | Digital Wine Ventures Ltd | 4.44 | 1.44 | 0.35 |
| HT8.AX | Harris Technology Group Ltd | 0.96 | 0.98 | 0.58 |
| INP.AX | Incentiapay Ltd | 2.98 | -1.62 | -0.53 |
| MYD.AX | Mydeal.ComAu Pty Ltd | 0 | 0.99 | 0.99 |
| TGH.AX | Terragen Holdings Ltd | 0.04 | -0.49 | -0.47 |
| UBN.AX | Urbanise com Ltd | 0.01 | -0.33 | -0.33 |
| ZLD.AX | Zelira Therapeutics Ltd | 1.01 | 0.45 | 0.26 |
| Low | High | |
| Unlevered beta | 0.12 | 0.26 |
| Relevered beta | 0.19 | 0.3 |
| Adjusted relevered beta | 0.46 | 0.53 |
WHK.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 WHK.AX:
cost_of_equity (7.35%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.46) + 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.