BRILL.AS WACC - Weighted Average Cost of Capital

The WACC of Koninklijke Brill NV (BRILL.AS) is 5.2%.

The Cost of Equity of Koninklijke Brill NV (BRILL.AS) is 5.55%.

The Cost of Debt of Koninklijke Brill NV (BRILL.AS) is 5.50%.

	Range	Selected
Cost of equity	4.80% - 6.30%	5.55%
Tax rate	28.30% - 30.00%	29.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.4% - 6.0%	5.2%

WACC

BRILL.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.34	0.37

Additional risk adjustments	0.5%	1.0%
Cost of equity	4.80%	6.30%

Tax rate	28.30%	30.00%
Debt/Equity ratio	0.24	0.24
Cost of debt	4.00%	7.00%

After-tax WACC	4.4%	6.0%


Selected WACC	5.2%

BRILL.AS'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 BRILL.AS:

cost_of_equity (5.55%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.