ENA.WA WACC - Weighted Average Cost of Capital
The WACC of Enea SA (ENA.WA) is 8.6%.
| Range | Selected | |
| Cost of equity | 10.6% - 13.6% | 12.1% |
| Tax rate | 15.9% - 33.0% | 24.45% |
| Cost of debt | 4.0% - 6.2% | 5.1% |
| WACC | 7.6% - 9.7% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.8 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.6% | 13.6% |
| Tax rate | 15.9% | 33.0% |
| Debt/Equity ratio | 0.71 | 0.71 |
| Cost of debt | 4.0% | 6.2% |
| After-tax WACC | 7.6% | 9.7% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ENA.WA | Enea SA | 0.71 | 0.7 | 0.44 |
| AYEN.IS | Ayen Enerji AS | 1.23 | 1.5 | 0.74 |
| BDZ.WA | Elektrocieplownia Bedzin SA | 0.2 | 0.98 | 0.84 |
| BKW.SW | BKW AG | 0.19 | 0.37 | 0.32 |
| ENG.WA | Energa SA | 2.3 | 0.37 | 0.13 |
| EVN.VI | EVN AG | 0.28 | 0.65 | 0.53 |
| IGN1L.VS | Ignitis Grupe AB | 1.23 | 1.43 | 0.71 |
| ODAS.IS | ODAS Elektrik Uretim Sanayi Ticaret AS | 1.06 | 1.56 | 0.83 |
| PPC.AT | Public Power Corporation SA | 1.39 | 0.93 | 0.43 |
| TPE.WA | Tauron Polska Energia SA | 0.95 | 0.64 | 0.36 |
| Low | High | |
| Unlevered beta | 0.44 | 0.6 |
| Relevered beta | 0.7 | 0.96 |
| Adjusted relevered beta | 0.8 | 0.97 |
ENA.WA'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 ENA.WA:
cost_of_equity (12.10%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.8) + 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.