AGFB.BR WACC - Weighted Average Cost of Capital

The WACC of AGFA Gevaert NV (AGFB.BR) is 9.1%.

The Cost of Equity of AGFA Gevaert NV (AGFB.BR) is 11.15%.

The Cost of Debt of AGFA Gevaert NV (AGFB.BR) is 9.80%.

	Range	Selected
Cost of equity	9.70% - 12.60%	11.15%
Tax rate	19.40% - 30.30%	24.85%
Cost of debt	7.00% - 12.60%	9.80%
WACC	7.6% - 10.6%	9.1%

WACC

AGFB.BR WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.14	1.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	12.60%

Tax rate	19.40%	30.30%
Debt/Equity ratio	1.12	1.12
Cost of debt	7.00%	12.60%

After-tax WACC	7.6%	10.6%


Selected WACC	9.1%

AGFB.BR'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 AGFB.BR:

cost_of_equity (11.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * 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.