ANIM3.SA WACC - Weighted Average Cost of Capital

The WACC of Anima Holding SA (ANIM3.SA) is 17.7%.

The Cost of Equity of Anima Holding SA (ANIM3.SA) is 25.50%.

The Cost of Debt of Anima Holding SA (ANIM3.SA) is 18.15%.

	Range	Selected
Cost of equity	23.10% - 27.90%	25.50%
Tax rate	6.80% - 21.40%	14.10%
Cost of debt	12.70% - 23.60%	18.15%
WACC	14.5% - 20.8%	17.7%

WACC

ANIM3.SA WACC calculation

Category	Low	High

Long-term bond rate	11.9%	12.4%
Equity market risk premium	9.5%	10.5%
Adjusted beta	1.18	1.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	23.10%	27.90%

Tax rate	6.80%	21.40%
Debt/Equity ratio	3.18	3.18
Cost of debt	12.70%	23.60%

After-tax WACC	14.5%	20.8%


Selected WACC	17.7%

ANIM3.SA'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 ANIM3.SA:

cost_of_equity (25.50%) = risk_free_rate (12.15%) + equity_risk_premium (10.00%) * adjusted_beta (1.18) + 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.