WLT.WA WACC - Weighted Average Cost of Capital

The WACC of Wielton SA (WLT.WA) is 9.2%.

The Cost of Equity of Wielton SA (WLT.WA) is 17.15%.

The Cost of Debt of Wielton SA (WLT.WA) is 6.30%.

	Range	Selected
Cost of equity	13.40% - 20.90%	17.15%
Tax rate	6.60% - 10.30%	8.45%
Cost of debt	5.60% - 7.00%	6.30%
WACC	7.7% - 10.8%	9.2%

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	1.24	1.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	20.90%

Tax rate	6.60%	10.30%
Debt/Equity ratio	2.26	2.26
Cost of debt	5.60%	7.00%

After-tax WACC	7.7%	10.8%


Selected WACC	9.2%

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 (17.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.24) + 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.