ANIM3.SA WACC - Weighted Average Cost of Capital

The WACC of Anima Holding SA (ANIM3.SA) is 15.5%.

The Cost of Equity of Anima Holding SA (ANIM3.SA) is 24.25%.

The Cost of Debt of Anima Holding SA (ANIM3.SA) is 15.70%.

	Range	Selected
Cost of equity	23.00% - 25.50%	24.25%
Tax rate	11.10% - 22.50%	16.80%
Cost of debt	14.30% - 17.10%	15.70%
WACC	15.1% - 16.0%	15.5%

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	1.17	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	23.00%	25.50%

Tax rate	11.10%	22.50%
Debt/Equity ratio	3.46	3.46
Cost of debt	14.30%	17.10%

After-tax WACC	15.1%	16.0%


Selected WACC	15.5%

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 (24.25%) = risk_free_rate (12.15%) + equity_risk_premium (10.00%) * adjusted_beta (1.17) + 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.