DECB.BR
Deceuninck NV
Price:  
2.13 
EUR
Volume:  
45,252.00
Belgium | Building Products
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DECB.BR WACC - Weighted Average Cost of Capital

The WACC of Deceuninck NV (DECB.BR) is 8.4%.

The Cost of Equity of Deceuninck NV (DECB.BR) is 10.30%.
The Cost of Debt of Deceuninck NV (DECB.BR) is 5.40%.

Range Selected
Cost of equity 9.10% - 11.50% 10.30%
Tax rate 19.20% - 32.50% 25.85%
Cost of debt 4.10% - 6.70% 5.40%
WACC 7.4% - 9.4% 8.4%
WACC

DECB.BR WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.04 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.10% 11.50%
Tax rate 19.20% 32.50%
Debt/Equity ratio 0.41 0.41
Cost of debt 4.10% 6.70%
After-tax WACC 7.4% 9.4%
Selected WACC 8.4%

DECB.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 DECB.BR:

cost_of_equity (10.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (1.04) + 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.