EMDV.TA WACC - Weighted Average Cost of Capital

The WACC of Emilia Development OFG Ltd (EMDV.TA) is 7.2%.

The Cost of Equity of Emilia Development OFG Ltd (EMDV.TA) is 10.75%.

The Cost of Debt of Emilia Development OFG Ltd (EMDV.TA) is 6.25%.

	Range	Selected
Cost of equity	9.30% - 12.20%	10.75%
Tax rate	28.70% - 29.40%	29.05%
Cost of debt	4.50% - 8.00%	6.25%
WACC	5.9% - 8.5%	7.2%

WACC

EMDV.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.72	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.20%

Tax rate	28.70%	29.40%
Debt/Equity ratio	1.25	1.25
Cost of debt	4.50%	8.00%

After-tax WACC	5.9%	8.5%


Selected WACC	7.2%

EMDV.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 EMDV.TA:

cost_of_equity (10.75%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.72) + 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.