EPH.SW
EPH European Property Holdings Ltd
Price:  
24 
EUR
Volume:  
197
Virgin Islands, British | Real Estate Management & Development

EPH.SW WACC - Weighted Average Cost of Capital

The WACC of EPH European Property Holdings Ltd (EPH.SW) is 3.8%.

The Cost of Equity of EPH European Property Holdings Ltd (EPH.SW) is 4.75%.
The Cost of Debt of EPH European Property Holdings Ltd (EPH.SW) is 4.3%.

RangeSelected
Cost of equity3.4% - 6.1%4.75%
Tax rate24.2% - 35.8%30%
Cost of debt4.0% - 4.6%4.3%
WACC3.2% - 4.5%3.8%
WACC

EPH.SW WACC calculation

CategoryLowHigh
Long-term bond rate1.0%1.5%
Equity market risk premium5.1%6.1%
Adjusted beta0.490.68
Additional risk adjustments0.0%0.5%
Cost of equity3.4%6.1%
Tax rate24.2%35.8%
Debt/Equity ratio
1.081.08
Cost of debt4.0%4.6%
After-tax WACC3.2%4.5%
Selected WACC3.8%

EPH.SW'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 EPH.SW:

cost_of_equity (4.75%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.49) + 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.