WLT.WA WACC - Weighted Average Cost of Capital

The WACC of Wielton SA (WLT.WA) is 8.9%.

The Cost of Equity of Wielton SA (WLT.WA) is 15.90%.

The Cost of Debt of Wielton SA (WLT.WA) is 5.70%.

	Range	Selected
Cost of equity	12.60% - 19.20%	15.90%
Tax rate	10.60% - 14.60%	12.60%
Cost of debt	4.40% - 7.00%	5.70%
WACC	7.1% - 10.7%	8.9%

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	1.12	1.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	19.20%

Tax rate	10.60%	14.60%
Debt/Equity ratio	1.8	1.8
Cost of debt	4.40%	7.00%

After-tax WACC	7.1%	10.7%


Selected WACC	8.9%

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 (15.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.12) + 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.