AI.MC WACC - Weighted Average Cost of Capital

The WACC of Airtificial Intelligence Structures SA (AI.MC) is 9.1%.

The Cost of Equity of Airtificial Intelligence Structures SA (AI.MC) is 9.25%.

The Cost of Debt of Airtificial Intelligence Structures SA (AI.MC) is 9.50%.

	Range	Selected
Cost of equity	8.30% - 10.20%	9.25%
Tax rate	4.30% - 7.80%	6.05%
Cost of debt	5.30% - 13.70%	9.50%
WACC	7.2% - 11.0%	9.1%

WACC

AI.MC WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.69	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	10.20%

Tax rate	4.30%	7.80%
Debt/Equity ratio	0.48	0.48
Cost of debt	5.30%	13.70%

After-tax WACC	7.2%	11.0%


Selected WACC	9.1%

AI.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 AI.MC:

cost_of_equity (9.25%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.69) + 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.