EUR.WA WACC - Weighted Average Cost of Capital

The WACC of Eurocash SA (EUR.WA) is 10.9%.

The Cost of Equity of Eurocash SA (EUR.WA) is 12.25%.

The Cost of Debt of Eurocash SA (EUR.WA) is 12.65%.

	Range	Selected
Cost of equity	10.20% - 14.30%	12.25%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	8.00% - 17.30%	12.65%
WACC	7.7% - 14.1%	10.9%

WACC

EUR.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.74	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	14.30%

Tax rate	19.00%	19.00%
Debt/Equity ratio	2.17	2.17
Cost of debt	8.00%	17.30%

After-tax WACC	7.7%	14.1%


Selected WACC	10.9%

EUR.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 EUR.WA:

cost_of_equity (12.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.74) + 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.