DOMO.MC WACC - Weighted Average Cost of Capital
The WACC of Domo Activos SA (DOMO.MC) is 9.7%.
| Range | Selected | |
| Cost of equity | 5.7% - 9.1% | 7.4% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 4.8% - 76.6% | 40.7% |
| WACC | 5.5% - 14.0% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.36 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 9.1% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 4.8% | 76.6% |
| After-tax WACC | 5.5% | 14.0% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DOMO.MC | Domo Activos SA | 0.11 | 0 | 0 |
| ASLI.L | Aberdeen Standard European Logistics Income PLC | 1.03 | 0.51 | 0.29 |
| CCE.WA | Clean&Carbon Energy SA | 0.16 | 0.05 | 0.05 |
| IFF.MC | Iffe Futura SA | 0.14 | 0.71 | 0.65 |
| NYE.MC | Nyesa Valores Corporacion SA | 1.55 | 1.06 | 0.49 |
| SPDI.L | Secure Property Development & Investment PLC | 0.18 | -1.12 | -0.98 |
| YAC1.MC | Almagro Capital SOCIMI SA | 0.17 | 1.02 | 0.91 |
| YINM.MC | Inmofam 99 SOCIMI SA | 0.21 | 0.03 | 0.02 |
| YPR3.MC | Corpfin Capital Prime Retail III SOCIMI SA | 0.71 | 1.01 | 0.66 |
| YTAR.MC | Tarjar Xairo Socimi SA | 0.44 | 0.01 | 0 |
| Low | High | |
| Unlevered beta | 0.04 | 0.37 |
| Relevered beta | 0.04 | 0.4 |
| Adjusted relevered beta | 0.36 | 0.6 |
DOMO.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 DOMO.MC:
cost_of_equity (7.40%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.36) + 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.