AC.MX WACC - Weighted Average Cost of Capital

The WACC of Arca Continental SAB de CV (AC.MX) is 15.4%.

The Cost of Equity of Arca Continental SAB de CV (AC.MX) is 16.65%.

The Cost of Debt of Arca Continental SAB de CV (AC.MX) is 10.00%.

	Range	Selected
Cost of equity	15.70% - 17.60%	16.65%
Tax rate	31.70% - 31.80%	31.75%
Cost of debt	8.90% - 11.10%	10.00%
WACC	14.5% - 16.4%	15.4%

WACC

AC.MX WACC calculation

Category	Low	High

Long-term bond rate	10.1%	10.6%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.72	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.70%	17.60%

Tax rate	31.70%	31.80%
Debt/Equity ratio	0.14	0.14
Cost of debt	8.90%	11.10%

After-tax WACC	14.5%	16.4%


Selected WACC	15.4%

AC.MX'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 AC.MX:

cost_of_equity (16.65%) = risk_free_rate (10.35%) + equity_risk_premium (8.40%) * adjusted_beta (0.72) + 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.