EKT.MC WACC - Weighted Average Cost of Capital
The WACC of Euskaltel SA (EKT.MC) is 7.9%.
| Range | Selected | |
| Cost of equity | 7.7% - 10.2% | 8.95% |
| Tax rate | 19.3% - 21.0% | 20.15% |
| Cost of debt | 4.0% - 12.2% | 8.1% |
| WACC | 5.8% - 10.0% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.79 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 10.2% |
| Tax rate | 19.3% | 21.0% |
| Debt/Equity ratio | 0.75 | 0.75 |
| Cost of debt | 4.0% | 12.2% |
| After-tax WACC | 5.8% | 10.0% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EKT.MC | Euskaltel SA | 0.75 | 0.68 | 0.43 |
| ADT.L | Adept Technology Group PLC | 0.81 | 1.5 | 0.91 |
| E4C.DE | Ecotel Communication AG | 0.15 | 0.33 | 0.29 |
| LLN.MC | Lleidanetworks Serveis Telematics SA | 0.38 | 0.56 | 0.43 |
| NET.WA | Netia SA | 0.27 | 0.2 | 0.17 |
| NEWS.AT | Newsphone Hellas SA | 0.17 | 0.48 | 0.42 |
| NOS.LS | NOS SGPS SA | 0.79 | 0.52 | 0.32 |
| R22.WA | R22 SA | 0.33 | 0.43 | 0.34 |
| TEL1L.VS | Telia Lietuva AB | 0.12 | 0.49 | 0.45 |
| ZEG.L | Zegona Communications PLC | 0.72 | 1.63 | 1.03 |
| Low | High | |
| Unlevered beta | 0.39 | 0.43 |
| Relevered beta | 0.69 | 0.82 |
| Adjusted relevered beta | 0.79 | 0.88 |
EKT.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 EKT.MC:
cost_of_equity (8.95%) = risk_free_rate (3.05%) + equity_risk_premium (6.80%) * adjusted_beta (0.79) + 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.