ECP.TA WACC - Weighted Average Cost of Capital

The WACC of Electra Consumer Products 1970 Ltd (ECP.TA) is 11.6%.

The Cost of Equity of Electra Consumer Products 1970 Ltd (ECP.TA) is 18.10%.

The Cost of Debt of Electra Consumer Products 1970 Ltd (ECP.TA) is 11.55%.

	Range	Selected
Cost of equity	15.10% - 21.10%	18.10%
Tax rate	20.70% - 28.20%	24.45%
Cost of debt	10.10% - 13.00%	11.55%
WACC	10.2% - 13.0%	11.6%

WACC

ECP.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.67	2.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.10%	21.10%

Tax rate	20.70%	28.20%
Debt/Equity ratio	2.24	2.24
Cost of debt	10.10%	13.00%

After-tax WACC	10.2%	13.0%


Selected WACC	11.6%

ECP.TA'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 ECP.TA:

cost_of_equity (18.10%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.67) + 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.