WTN.WA WACC - Weighted Average Cost of Capital

The WACC of Wittchen SA (WTN.WA) is 8.1%.

The Cost of Equity of Wittchen SA (WTN.WA) is 9.20%.

The Cost of Debt of Wittchen SA (WTN.WA) is 5.05%.

	Range	Selected
Cost of equity	7.80% - 10.60%	9.20%
Tax rate	19.40% - 19.70%	19.55%
Cost of debt	4.00% - 6.10%	5.05%
WACC	6.9% - 9.4%	8.1%

WACC

WTN.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.37	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.60%

Tax rate	19.40%	19.70%
Debt/Equity ratio	0.27	0.27
Cost of debt	4.00%	6.10%

After-tax WACC	6.9%	9.4%


Selected WACC	8.1%

WTN.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 WTN.WA:

cost_of_equity (9.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.37) + 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.