RPAC.TA WACC - Weighted Average Cost of Capital

The WACC of Rapac Communication & Infrastructure Ltd (RPAC.TA) is 10.2%.

The Cost of Equity of Rapac Communication & Infrastructure Ltd (RPAC.TA) is 9.40%.

The Cost of Debt of Rapac Communication & Infrastructure Ltd (RPAC.TA) is 15.70%.

	Range	Selected
Cost of equity	8.20% - 10.60%	9.40%
Tax rate	16.80% - 18.10%	17.45%
Cost of debt	10.10% - 21.30%	15.70%
WACC	8.3% - 12.1%	10.2%

WACC

RPAC.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.56	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	10.60%

Tax rate	16.80%	18.10%
Debt/Equity ratio	0.27	0.27
Cost of debt	10.10%	21.30%

After-tax WACC	8.3%	12.1%


Selected WACC	10.2%

RPAC.TA'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 RPAC.TA:

cost_of_equity (9.40%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.56) + 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.