ADV.WA WACC - Weighted Average Cost of Capital
The WACC of Adiuvo Investments SA (ADV.WA) is 7.1%.
| Range | Selected | |
| Cost of equity | 7.9% - 12.3% | 10.1% |
| Tax rate | 2.6% - 5.1% | 3.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 8.1% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.37 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 12.3% |
| Tax rate | 2.6% | 5.1% |
| Debt/Equity ratio | 1.28 | 1.28 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 8.1% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ADV.WA | Adiuvo Investments SA | 1.28 | -0.55 | -0.25 |
| ALTUR.PA | Altur Investissement SCA | 0 | 0.43 | 0.43 |
| BLU.WA | Blumerang Investors SA | 0.81 | -1.49 | -0.84 |
| BRSD.L | Brandshield Systems PLC | 0.23 | -0.8 | -0.65 |
| CNLCAP.AT | CNL Capital EKES AIFM | 0.88 | 0.16 | 0.09 |
| FLEXD.LS | Flexdeal SIMFE SA | 0.08 | -0.07 | -0.06 |
| JADE.L | Jade Road Investments Ltd | 6.83 | 1.75 | 0.23 |
| LOUD.HE | Loudspring Plc | 0.5 | 1.06 | 0.72 |
| RHEAG.IS | Rhea Girisim Sermayesi Yatirim Ortakligi AS | 0.11 | 0.73 | 0.66 |
| VTI.WA | Venture Inc SA | 0 | 1.16 | 1.15 |
| Low | High | |
| Unlevered beta | 0.03 | 0.31 |
| Relevered beta | 0.06 | 0.69 |
| Adjusted relevered beta | 0.37 | 0.79 |
ADV.WA'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 ADV.WA:
cost_of_equity (10.10%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.37) + 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.