AJAX.AS WACC - Weighted Average Cost of Capital

The WACC of AFC Ajax NV (AJAX.AS) is 4.7%.

The Cost of Equity of AFC Ajax NV (AJAX.AS) is 5.05%.

The Cost of Debt of AFC Ajax NV (AJAX.AS) is 5.50%.

	Range	Selected
Cost of equity	4.30% - 5.80%	5.05%
Tax rate	24.30% - 26.30%	25.30%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.8% - 5.6%	4.7%

WACC

AJAX.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.34	0.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.30%	5.80%

Tax rate	24.30%	26.30%
Debt/Equity ratio	0.61	0.61
Cost of debt	4.00%	7.00%

After-tax WACC	3.8%	5.6%


Selected WACC	4.7%

AJAX.AS'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 AJAX.AS:

cost_of_equity (5.05%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + 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.