The WACC of Unibios Holdings SA (BIOSK.AT) is 7.6%.
Range | Selected | |
Cost of equity | 7.20% - 9.80% | 8.50% |
Tax rate | 23.20% - 24.00% | 23.60% |
Cost of debt | 4.20% - 5.80% | 5.00% |
WACC | 6.4% - 8.8% | 7.6% |
Category | Low | High |
Long-term bond rate | 3.3% | 3.8% |
Equity market risk premium | 8.8% | 9.8% |
Adjusted beta | 0.44 | 0.56 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.20% | 9.80% |
Tax rate | 23.20% | 24.00% |
Debt/Equity ratio | 0.24 | 0.24 |
Cost of debt | 4.20% | 5.80% |
After-tax WACC | 6.4% | 8.8% |
Selected WACC | 7.6% | |
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 BIOSK.AT:
cost_of_equity (8.50%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.44) + 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.