ADGR.TA WACC - Weighted Average Cost of Capital

The WACC of Adgar Investments and Development Ltd (ADGR.TA) is 6.9%.

The Cost of Equity of Adgar Investments and Development Ltd (ADGR.TA) is 13.95%.

The Cost of Debt of Adgar Investments and Development Ltd (ADGR.TA) is 8.65%.

	Range	Selected
Cost of equity	11.80% - 16.10%	13.95%
Tax rate	28.20% - 40.50%	34.35%
Cost of debt	4.00% - 13.30%	8.65%
WACC	4.4% - 9.3%	6.9%

WACC

ADGR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.14	1.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	16.10%

Tax rate	28.20%	40.50%
Debt/Equity ratio	4.76	4.76
Cost of debt	4.00%	13.30%

After-tax WACC	4.4%	9.3%


Selected WACC	6.9%

ADGR.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 ADGR.TA:

cost_of_equity (13.95%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.14) + 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.