WIK.WA WACC - Weighted Average Cost of Capital

The WACC of Wikana SA (WIK.WA) is 9.4%.

The Cost of Equity of Wikana SA (WIK.WA) is 9.65%.

The Cost of Debt of Wikana SA (WIK.WA) is 6.80%.

	Range	Selected
Cost of equity	8.60% - 10.70%	9.65%
Tax rate	15.00% - 16.30%	15.65%
Cost of debt	6.10% - 7.50%	6.80%
WACC	8.3% - 10.4%	9.4%

WACC

WIK.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.49	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	10.70%

Tax rate	15.00%	16.30%
Debt/Equity ratio	0.08	0.08
Cost of debt	6.10%	7.50%

After-tax WACC	8.3%	10.4%


Selected WACC	9.4%

WIK.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 WIK.WA:

cost_of_equity (9.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.49) + 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.