EUC.WA WACC - Weighted Average Cost of Capital

The WACC of Europejskie Centrum Odszkodowan SA (EUC.WA) is 9.9%.

The Cost of Equity of Europejskie Centrum Odszkodowan SA (EUC.WA) is 14.05%.

The Cost of Debt of Europejskie Centrum Odszkodowan SA (EUC.WA) is 6.10%.

	Range	Selected
Cost of equity	12.30% - 15.80%	14.05%
Tax rate	2.70% - 5.30%	4.00%
Cost of debt	6.10% - 6.10%	6.10%
WACC	9.0% - 10.7%	9.9%

WACC

EUC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.07	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	15.80%

Tax rate	2.70%	5.30%
Debt/Equity ratio	1.04	1.04
Cost of debt	6.10%	6.10%

After-tax WACC	9.0%	10.7%


Selected WACC	9.9%

EUC.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 EUC.WA:

cost_of_equity (14.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.07) + 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.