ENO.MC WACC - Weighted Average Cost of Capital
The WACC of Elecnor SA (ENO.MC) is 9.5%.
| Range | Selected | |
| Cost of equity | 8.9% - 11.9% | 10.4% |
| Tax rate | 31.6% - 34.2% | 32.9% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 8.1% - 10.9% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.78 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 11.9% |
| Tax rate | 31.6% | 34.2% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 8.1% | 10.9% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ENO.MC | Elecnor SA | 0.15 | 0.99 | 0.9 |
| AFG.OL | Af Gruppen ASA | 0.08 | 0.71 | 0.68 |
| BDX.WA | Budimex SA | 0.02 | 1.11 | 1.09 |
| BOKA.AS | Koninklijke Boskalis Westminster NV | 0.13 | 0.86 | 0.79 |
| EGL.LS | Mota Engil SGPS SA | 2.11 | 1.26 | 0.53 |
| MT.MI | Maire Tecnimont SpA | 0.63 | 1.5 | 1.06 |
| OHL.MC | Obrascon Huarte Lain SA | 1.59 | 1.69 | 0.83 |
| ORANW.AS | Oranjewoud NV | 1.21 | 0.33 | 0.18 |
| PAAL B.CO | Per Aarsleff Holding A/S | 0.17 | 0.2 | 0.18 |
| YIT.HE | Yit Oyj | 1.5 | 0.9 | 0.46 |
| Low | High | |
| Unlevered beta | 0.62 | 0.81 |
| Relevered beta | 0.67 | 0.88 |
| Adjusted relevered beta | 0.78 | 0.92 |
ENO.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 ENO.MC:
cost_of_equity (10.40%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.78) + 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.