The WACC of Agile Content SA (AGIL.MC) is 13.0%.
| Range | Selected | |
| Cost of equity | 6.80% - 12.80% | 9.80% |
| Tax rate | 9.50% - 21.70% | 15.60% |
| Cost of debt | 8.30% - 42.60% | 25.45% |
| WACC | 7.1% - 19.0% | 13.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.5 | 1.03 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.80% | 12.80% |
| Tax rate | 9.50% | 21.70% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 8.30% | 42.60% |
| After-tax WACC | 7.1% | 19.0% |
| Selected WACC | 13.0% | |
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 AGIL.MC:
cost_of_equity (9.80%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.5) + 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.