AMAG.VI WACC - Weighted Average Cost of Capital

The WACC of AMAG Austria Metall AG (AMAG.VI) is 5.9%.

The Cost of Equity of AMAG Austria Metall AG (AMAG.VI) is 7.85%.

The Cost of Debt of AMAG Austria Metall AG (AMAG.VI) is 4.95%.

	Range	Selected
Cost of equity	6.60% - 9.10%	7.85%
Tax rate	28.00% - 29.60%	28.80%
Cost of debt	4.00% - 5.90%	4.95%
WACC	5.0% - 6.9%	5.9%

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	0.67	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	9.10%

Tax rate	28.00%	29.60%
Debt/Equity ratio	0.78	0.78
Cost of debt	4.00%	5.90%

After-tax WACC	5.0%	6.9%


Selected WACC	5.9%

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 (7.85%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.67) + 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.