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 |
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.