Whats wrong with the WACC? From my understanding most of the...

Whats wrong with the WACC? From my understanding most of the company is equity so really the WACC is just the risk free rate + the company beta times the market premium.

Cash rate was 4.5% from the RBA and a beta of 0.96 as sourced from huntleys comsec and yahoo finance.

I think the main point on concern is the return on the market. But i have done a long term average (20 years) trying my best to smooth out things like the GFC. But even with this in mind we can see that we have a bit of fat to play with as it doesn't sway our valuation too much.

Whats your take on the WACC how would you approach it? The way i have done it is perfect textbook theory and from the 13 i have had to read so far in my finance life they are all pretty much the same on the methods of using CAPM to find the return on equity then useing WACC to weight this with the cost of debt adjusted for tax.

Maybe averageing it 20 years is a bit too reserved but this is open to interpretation and many others would use a different time frame (which gives different values which is why there is trading on the market)

my email is [email protected] feel free to pick my brain on CAPM theory and required rates of returns for debt and equity.