AMC.WA WACC - Weighted Average Cost of Capital

The WACC of Amica SA (AMC.WA) is 9.6%.

The Cost of Equity of Amica SA (AMC.WA) is 10.65%.

The Cost of Debt of Amica SA (AMC.WA) is 9.10%.

	Range	Selected
Cost of equity	9.60% - 11.70%	10.65%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	9.10% - 9.10%	9.10%
WACC	8.9% - 10.3%	9.6%

WACC

AMC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.65	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	11.70%

Tax rate	19.00%	19.00%
Debt/Equity ratio	0.49	0.49
Cost of debt	9.10%	9.10%

After-tax WACC	8.9%	10.3%


Selected WACC	9.6%

AMC.WA'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 AMC.WA:

cost_of_equity (10.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.65) + 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.