WLT.WA WACC - Weighted Average Cost of Capital

The WACC of Wielton SA (WLT.WA) is 11.5%.

The Cost of Equity of Wielton SA (WLT.WA) is 13.15%.

The Cost of Debt of Wielton SA (WLT.WA) is 13.25%.

	Range	Selected
Cost of equity	11.40% - 14.90%	13.15%
Tax rate	16.20% - 22.90%	19.55%
Cost of debt	4.00% - 22.50%	13.25%
WACC	6.6% - 16.4%	11.5%

WACC

WLT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.92	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	14.90%

Tax rate	16.20%	22.90%
Debt/Equity ratio	1.44	1.44
Cost of debt	4.00%	22.50%

After-tax WACC	6.6%	16.4%


Selected WACC	11.5%

WLT.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 WLT.WA:

cost_of_equity (13.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.92) + 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.