WPR.AX
Waypoint REIT Ltd
Price:  
2.45 
AUD
Volume:  
1,627,987
Australia | Equity Real Estate Investment Trusts (REITs)

WPR.AX WACC - Weighted Average Cost of Capital

The WACC of Waypoint REIT Ltd (WPR.AX) is 6.8%.

The Cost of Equity of Waypoint REIT Ltd (WPR.AX) is 8.35%.
The Cost of Debt of Waypoint REIT Ltd (WPR.AX) is 5.5%.

RangeSelected
Cost of equity7.2% - 9.5%8.35%
Tax rate30.0% - 30.0%30%
Cost of debt4.0% - 7.0%5.5%
WACC5.6% - 7.9%6.8%
WACC

WPR.AX WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium5.1%6.1%
Adjusted beta0.620.74
Additional risk adjustments0.0%0.5%
Cost of equity7.2%9.5%
Tax rate30.0%30.0%
Debt/Equity ratio
0.550.55
Cost of debt4.0%7.0%
After-tax WACC5.6%7.9%
Selected WACC6.8%

WPR.AX'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 WPR.AX:

cost_of_equity (8.35%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.62) + 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.