A3M.MC WACC - Weighted Average Cost of Capital
The WACC of Atresmedia Corporacion de Medios de Comunicacion SA (A3M.MC) is 7.0%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.7% | 7.4% |
| Tax rate | 24.2% - 25.2% | 24.7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 8.1% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.41 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.7% |
| Tax rate | 24.2% | 25.2% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 8.1% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| A3M.MC | Atresmedia Corporacion de Medios de Comunicacion SA | 0.13 | 0.83 | 0.75 |
| IPR.LS | Impresa Sociedade Gestora de Participacoes Sociais SA | 5.88 | 0.52 | 0.1 |
| KPL.WA | Kino Polska TV SA | 0.03 | 0.07 | 0.07 |
| MCP.LS | Grupo Media Capital SGPS SA | 0.19 | -1.84 | -1.61 |
| MMT.PA | Metropole Television SA | 0.07 | 0.95 | 0.91 |
| NRG.PA | NRJ Group SA | 0.06 | 0.08 | 0.08 |
| RWAY.MI | Rai Way SpA | 0.09 | 0.34 | 0.32 |
| SEC.MC | Secuoya Grupo de Comunicacion SA | 0.4 | 0.14 | 0.11 |
| STVG.L | STV Group PLC | 0.89 | 0.47 | 0.28 |
| TL5.MC | Mediaset Espana Comunicacion SA | 0.03 | 1.18 | 1.16 |
| Low | High | |
| Unlevered beta | 0.1 | 0.3 |
| Relevered beta | 0.12 | 0.33 |
| Adjusted relevered beta | 0.41 | 0.55 |
A3M.MC'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 A3M.MC:
cost_of_equity (7.40%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.41) + 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.