EAH.WA
Esotiq & Henderson SA
Price:  
35.40 
PLN
Volume:  
3,182.00
Poland | Textiles, Apparel & Luxury Goods
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EAH.WA WACC - Weighted Average Cost of Capital

The WACC of Esotiq & Henderson SA (EAH.WA) is 8.9%.

The Cost of Equity of Esotiq & Henderson SA (EAH.WA) is 10.75%.
The Cost of Debt of Esotiq & Henderson SA (EAH.WA) is 5.85%.

Range Selected
Cost of equity 8.80% - 12.70% 10.75%
Tax rate 20.40% - 26.50% 23.45%
Cost of debt 5.30% - 6.40% 5.85%
WACC 7.4% - 10.3% 8.9%
WACC

EAH.WA WACC calculation

Category Low High
Long-term bond rate 5.5% 6.0%
Equity market risk premium 6.3% 7.3%
Adjusted beta 0.52 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 12.70%
Tax rate 20.40% 26.50%
Debt/Equity ratio 0.43 0.43
Cost of debt 5.30% 6.40%
After-tax WACC 7.4% 10.3%
Selected WACC 8.9%

EAH.WA'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 EAH.WA:

cost_of_equity (10.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.52) + 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.