ASC.BR WACC - Weighted Average Cost of Capital
The WACC of Ascencio SCA (ASC.BR) is 5.7%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.4% | 7.45% |
| Tax rate | 3.8% - 4.6% | 4.2% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 5.1% - 6.3% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 6.4% | 7.4% |
| Adjusted beta | 0.51 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.4% |
| Tax rate | 3.8% | 4.6% |
| Debt/Equity ratio | 1.11 | 1.11 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 5.1% | 6.3% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ASC.BR | Ascencio SCA | 1.11 | 0.57 | 0.28 |
| CAL.L | Capital & Regional PLC | 1.56 | 0.28 | 0.11 |
| INTERCO.AT | Intercontinental International Real Estate Investment Company SA | 1.38 | 0.21 | 0.09 |
| QRF.BR | QRF Comm. VA | 1.16 | 0.27 | 0.13 |
| SELER.PA | Selectirente SA | 0.59 | 0.06 | 0.04 |
| VASTB.BR | Vastned Retail Belgium SA | 0.17 | 0.48 | 0.41 |
| VASTN.AS | Vastned Retail NV | 1.5 | 0.22 | 0.09 |
| WEHB.BR | Wereldhave Belgium NV | 0.55 | 0.13 | 0.09 |
| YGGYO.IS | Yeni Gimat Gayrimenkul Yatirim Ortakligi AS | 0 | 0.05 | 0.05 |
| YORE.MC | Olimpo Real Estate SOCIMI SA | 0.88 | -0.06 | -0.03 |
| Low | High | |
| Unlevered beta | 0.09 | 0.1 |
| Relevered beta | 0.27 | 0.36 |
| Adjusted relevered beta | 0.51 | 0.57 |
ASC.BR'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 ASC.BR:
cost_of_equity (7.45%) = risk_free_rate (3.45%) + equity_risk_premium (6.90%) * adjusted_beta (0.51) + 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.