EBRO.MC
Ebro Foods SA
Price:  
17.04 
EUR
Volume:  
60,631.00
Spain | Food Products
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EBRO.MC WACC - Weighted Average Cost of Capital

The WACC of Ebro Foods SA (EBRO.MC) is 7.0%.

The Cost of Equity of Ebro Foods SA (EBRO.MC) is 7.60%.
The Cost of Debt of Ebro Foods SA (EBRO.MC) is 5.50%.

Range Selected
Cost of equity 6.40% - 8.80% 7.60%
Tax rate 26.40% - 26.80% 26.60%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.9% - 8.2% 7.0%
WACC

EBRO.MC WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.45 0.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 8.80%
Tax rate 26.40% 26.80%
Debt/Equity ratio 0.19 0.19
Cost of debt 4.00% 7.00%
After-tax WACC 5.9% 8.2%
Selected WACC 7.0%

EBRO.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 EBRO.MC:

cost_of_equity (7.60%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.45) + 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.