EEZY.HE WACC - Weighted Average Cost of Capital

The WACC of Eezy Plc (EEZY.HE) is 5.8%.

The Cost of Equity of Eezy Plc (EEZY.HE) is 9.50%.

The Cost of Debt of Eezy Plc (EEZY.HE) is 5.50%.

	Range	Selected
Cost of equity	7.80% - 11.20%	9.50%
Tax rate	21.30% - 23.70%	22.50%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.5% - 7.0%	5.8%

WACC

EEZY.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.9	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	11.20%

Tax rate	21.30%	23.70%
Debt/Equity ratio	2.44	2.44
Cost of debt	4.00%	7.00%

After-tax WACC	4.5%	7.0%


Selected WACC	5.8%

EEZY.HE'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 EEZY.HE:

cost_of_equity (9.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.9) + 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.