The WACC of Immo Antares NV (ANT.BR) is 6.3%.
| Range | Selected | |
| Cost of equity | 24.60% - 33.90% | 29.25% |
| Tax rate | 27.40% - 29.00% | 28.20% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 5.8% - 6.7% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 1.7% | 2.2% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 4.3 | 4.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 24.60% | 33.90% |
| Tax rate | 27.40% | 29.00% |
| Debt/Equity ratio | 8.64 | 8.64 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 5.8% | 6.7% |
| Selected WACC | 6.3% | |
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 ANT.BR:
cost_of_equity (29.25%) = risk_free_rate (1.95%) + equity_risk_premium (5.80%) * adjusted_beta (4.3) + 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.