WOJ.WA WACC - Weighted Average Cost of Capital

The WACC of Wojas SA (WOJ.WA) is 9.6%.

The Cost of Equity of Wojas SA (WOJ.WA) is 13.40%.

The Cost of Debt of Wojas SA (WOJ.WA) is 5.30%.

	Range	Selected
Cost of equity	12.20% - 14.60%	13.40%
Tax rate	13.10% - 14.90%	14.00%
Cost of debt	4.00% - 6.60%	5.30%
WACC	8.5% - 10.7%	9.6%

WACC

WOJ.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.06	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	14.60%

Tax rate	13.10%	14.90%
Debt/Equity ratio	0.76	0.76
Cost of debt	4.00%	6.60%

After-tax WACC	8.5%	10.7%


Selected WACC	9.6%

WOJ.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 WOJ.WA:

cost_of_equity (13.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.06) + 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.