ACS.MC
ACS Actividades de Construccion y Servicios SA
Price:  
57.25 
EUR
Volume:  
165,757.00
Spain | Construction & Engineering
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ACS.MC WACC - Weighted Average Cost of Capital

The WACC of ACS Actividades de Construccion y Servicios SA (ACS.MC) is 8.3%.

The Cost of Equity of ACS Actividades de Construccion y Servicios SA (ACS.MC) is 11.05%.
The Cost of Debt of ACS Actividades de Construccion y Servicios SA (ACS.MC) is 6.80%.

Range Selected
Cost of equity 9.50% - 12.60% 11.05%
Tax rate 19.00% - 23.30% 21.15%
Cost of debt 5.30% - 8.30% 6.80%
WACC 7.0% - 9.6% 8.3%
WACC

ACS.MC WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.86 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.50% 12.60%
Tax rate 19.00% 23.30%
Debt/Equity ratio 0.93 0.93
Cost of debt 5.30% 8.30%
After-tax WACC 7.0% 9.6%
Selected WACC 8.3%

ACS.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 ACS.MC:

cost_of_equity (11.05%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.86) + 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.