EUC.WA WACC - Weighted Average Cost of Capital

The WACC of Europejskie Centrum Odszkodowan SA (EUC.WA) is 8.7%.

The Cost of Equity of Europejskie Centrum Odszkodowan SA (EUC.WA) is 40.55%.

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

	Range	Selected
Cost of equity	34.70% - 46.40%	40.55%
Tax rate	2.70% - 5.30%	4.00%
Cost of debt	6.10% - 6.10%	6.10%
WACC	8.3% - 9.2%	8.7%

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	4.6	5.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	34.70%	46.40%

Tax rate	2.70%	5.30%
Debt/Equity ratio	11.02	11.02
Cost of debt	6.10%	6.10%

After-tax WACC	8.3%	9.2%


Selected WACC	8.7%

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 (40.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (4.6) + 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.