ECR.MC
Ercros SA
Price:  
2.96 
EUR
Volume:  
31,418.00
Spain | Chemicals
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

ECR.MC WACC - Weighted Average Cost of Capital

The WACC of Ercros SA (ECR.MC) is 7.2%.

The Cost of Equity of Ercros SA (ECR.MC) is 8.40%.
The Cost of Debt of Ercros SA (ECR.MC) is 6.15%.

Range Selected
Cost of equity 6.90% - 9.90% 8.40%
Tax rate 13.40% - 17.10% 15.25%
Cost of debt 5.30% - 7.00% 6.15%
WACC 6.0% - 8.3% 7.2%
WACC

ECR.MC WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.51 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.90%
Tax rate 13.40% 17.10%
Debt/Equity ratio 0.64 0.64
Cost of debt 5.30% 7.00%
After-tax WACC 6.0% 8.3%
Selected WACC 7.2%

ECR.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 ECR.MC:

cost_of_equity (8.40%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.51) + 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.