EXC.WA WACC - Weighted Average Cost of Capital

The WACC of Excellence SA (EXC.WA) is 11.0%.

The Cost of Equity of Excellence SA (EXC.WA) is 11.20%.

The Cost of Debt of Excellence SA (EXC.WA) is 5.95%.

	Range	Selected
Cost of equity	10.00% - 12.40%	11.20%
Tax rate	18.50% - 22.00%	20.25%
Cost of debt	4.90% - 7.00%	5.95%
WACC	9.8% - 12.2%	11.0%

WACC

EXC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.7	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	12.40%

Tax rate	18.50%	22.00%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.90%	7.00%

After-tax WACC	9.8%	12.2%


Selected WACC	11.0%

EXC.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 EXC.WA:

cost_of_equity (11.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.7) + 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.