COLR.BR WACC - Weighted Average Cost of Capital
The WACC of Etablissementen Franz Colruyt NV (COLR.BR) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.2% | 7% |
| Tax rate | 21.8% - 23.0% | 22.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.4% - 7.4% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.5 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.2% |
| Tax rate | 21.8% | 23.0% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.4% | 7.4% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| COLR.BR | Etablissementen Franz Colruyt NV | 0.21 | -0.77 | -0.66 |
| AXFO.ST | Axfood AB | 0.26 | 0.06 | 0.05 |
| BIMAS.IS | BIM Birlesik Magazalar AS | 0.13 | 0.47 | 0.42 |
| DNP.WA | Dino Polska SA | 0.02 | 1.1 | 1.08 |
| KESKOB.HE | Kesko Oyj | 0.41 | 0.43 | 0.33 |
| MCLS.L | McColl's Retail Group PLC | 29.02 | 0 | 0 |
| MGROS.IS | Migros Ticaret AS | 0.94 | 1 | 0.58 |
| SOKM.IS | Sok Marketler Ticaret AS | 0.3 | 0.98 | 0.79 |
| SON.LS | Sonae SGPS SA | 1.75 | 0.79 | 0.34 |
| TKM1T.TL | Tallinna Kaubamaja Grupp AS | 0.84 | -0.08 | -0.05 |
| Low | High | |
| Unlevered beta | 0.22 | 0.37 |
| Relevered beta | 0.25 | 0.43 |
| Adjusted relevered beta | 0.5 | 0.62 |
COLR.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 COLR.BR:
cost_of_equity (7.00%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.5) + 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.