ZMT.WA WACC - Weighted Average Cost of Capital

The WACC of Zamet SA (ZMT.WA) is 11.5%.

The Cost of Equity of Zamet SA (ZMT.WA) is 11.65%.

The Cost of Debt of Zamet SA (ZMT.WA) is 15.50%.

	Range	Selected
Cost of equity	10.50% - 12.80%	11.65%
Tax rate	26.70% - 35.60%	31.15%
Cost of debt	8.50% - 22.50%	15.50%
WACC	10.1% - 13.0%	11.5%

WACC

ZMT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.79	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	12.80%

Tax rate	26.70%	35.60%
Debt/Equity ratio	0.1	0.1
Cost of debt	8.50%	22.50%

After-tax WACC	10.1%	13.0%


Selected WACC	11.5%

ZMT.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 ZMT.WA:

cost_of_equity (11.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.79) + 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.