EAC.CO WACC - Weighted Average Cost of Capital
The WACC of EAC Invest A/S (EAC.CO) is 5.2%.
| Range | Selected | |
| Cost of equity | 3.9% - 9.1% | 6.5% |
| Tax rate | 22.0% - 22.0% | 22% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.9% - 6.5% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.22 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 3.9% | 9.1% |
| Tax rate | 22.0% | 22.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.9% | 6.5% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EAC.CO | EAC Invest A/S | 0.96 | -0.01 | -0.01 |
| JETPAK.ST | Jetpak Top Holding AB (publ) | 0.16 | -0.11 | -0.1 |
| LOG.MC | Compania de Distribucion Integral Logista Holdings SA | 0.07 | 0.3 | 0.29 |
| MLL.DE | Mueller Die lila Logistik SE | 3.1 | 0.01 | 0 |
| NLG1V.HE | Nurminen Logistics Oyj | 0.53 | 0.35 | 0.25 |
| OBD.L | Oxford Biodynamics PLC | 0.77 | -1.33 | -0.83 |
| RYSAS.IS | Reysas Tasimacilik ve Lojistik Ticaret AS | 1.76 | 1.03 | 0.43 |
| SBTX.L | SkinBioTherapeutics PLC | 0.02 | 1.7 | 1.67 |
| TGHN.DE | Logwin AG SA | 0.08 | 0.04 | 0.04 |
| WIN.L | Wincanton PLC | 0.28 | -0.29 | -0.24 |
| XPD.L | Xpediator PLC | 1.23 | 1.51 | 0.77 |
| Low | High | |
| Unlevered beta | 0 | 0.25 |
| Relevered beta | -0.16 | 0.79 |
| Adjusted relevered beta | 0.22 | 0.86 |
EAC.CO'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 EAC.CO:
cost_of_equity (6.50%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.22) + 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.