The WACC of Amper SA (AMP.MC) is 9.5%.
| Range | Selected | |
| Cost of equity | 9.30% - 12.20% | 10.75% |
| Tax rate | 7.40% - 15.30% | 11.35% |
| Cost of debt | 5.50% - 9.50% | 7.50% |
| WACC | 8.0% - 10.9% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 1.03 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.30% | 12.20% |
| Tax rate | 7.40% | 15.30% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 5.50% | 9.50% |
| After-tax WACC | 8.0% | 10.9% |
| Selected WACC | 9.5% | |
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 AMP.MC:
cost_of_equity (10.75%) = risk_free_rate (3.05%) + equity_risk_premium (6.80%) * adjusted_beta (1.03) + 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.