EVS.BR WACC - Weighted Average Cost of Capital
The WACC of Evs Broadcast Equipment SA (EVS.BR) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.8% | 7.65% |
| Tax rate | 7.2% - 8.0% | 7.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.4% - 8.7% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.6 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.8% |
| Tax rate | 7.2% | 8.0% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.4% | 8.7% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EVS.BR | Evs Broadcast Equipment SA | 0.03 | 0.8 | 0.78 |
| ALCTL.IS | Alcatel Lucent Teletas Telekomunikasyon AS | 0.03 | 0.52 | 0.5 |
| ALMIC.PA | Micropole SA | 0.34 | 0.02 | 0.02 |
| ATEME.PA | Ateme SA | 0.79 | 0.28 | 0.16 |
| BVC.L | Batm Advanced Communications Ltd | 0.09 | 0.25 | 0.23 |
| EKI.PA | Ekinops SA | 0.3 | 0.97 | 0.76 |
| KAREL.IS | Karel Elektronik Sanayi ve Ticaret AS | 0.31 | 1.37 | 1.07 |
| PARRO.PA | Parrot SA | 0.03 | 0.64 | 0.62 |
| RTX.CO | Rtx A/S | 0.08 | 0.02 | 0.02 |
| ZENT.BR | Zenitel SA | 0.06 | 0.54 | 0.51 |
| Low | High | |
| Unlevered beta | 0.39 | 0.56 |
| Relevered beta | 0.4 | 0.57 |
| Adjusted relevered beta | 0.6 | 0.71 |
EVS.BR'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 EVS.BR:
cost_of_equity (7.65%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.6) + 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.