AMAG.VI WACC - Weighted Average Cost of Capital

The WACC of AMAG Austria Metall AG (AMAG.VI) is 7.9%.

The Cost of Equity of AMAG Austria Metall AG (AMAG.VI) is 7.40%.

The Cost of Debt of AMAG Austria Metall AG (AMAG.VI) is 11.90%.

	Range	Selected
Cost of equity	6.30% - 8.50%	7.40%
Tax rate	26.50% - 28.20%	27.35%
Cost of debt	4.00% - 19.80%	11.90%
WACC	5.0% - 10.7%	7.9%

WACC

AMAG.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.61	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.50%

Tax rate	26.50%	28.20%
Debt/Equity ratio	0.63	0.63
Cost of debt	4.00%	19.80%

After-tax WACC	5.0%	10.7%


Selected WACC	7.9%

AMAG.VI'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 AMAG.VI:

cost_of_equity (7.40%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.61) + 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.