DESA.MC
Desarrollos Especiales de Sistemas de Anclajes SA
Price:  
16 
EUR
Volume:  
160
Spain | Machinery

DESA.MC WACC - Weighted Average Cost of Capital

The WACC of Desarrollos Especiales de Sistemas de Anclajes SA (DESA.MC) is 6.7%.

The Cost of Equity of Desarrollos Especiales de Sistemas de Anclajes SA (DESA.MC) is 8.8%.
The Cost of Debt of Desarrollos Especiales de Sistemas de Anclajes SA (DESA.MC) is 4.25%.

RangeSelected
Cost of equity7.4% - 10.2%8.8%
Tax rate20.7% - 22.4%21.55%
Cost of debt4.0% - 4.5%4.25%
WACC5.8% - 7.6%6.7%
WACC

DESA.MC WACC calculation

CategoryLowHigh
Long-term bond rate2.8%3.3%
Equity market risk premium6.3%7.3%
Adjusted beta0.740.88
Additional risk adjustments0.0%0.5%
Cost of equity7.4%10.2%
Tax rate20.7%22.4%
Debt/Equity ratio
0.650.65
Cost of debt4.0%4.5%
After-tax WACC5.8%7.6%
Selected WACC6.7%

DESA.MC'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 DESA.MC:

cost_of_equity (8.80%) = risk_free_rate (3.05%) + equity_risk_premium (6.80%) * adjusted_beta (0.74) + 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.