FLEXD.LS WACC - Weighted Average Cost of Capital

The WACC of Flexdeal SIMFE SA (FLEXD.LS) is 6.9%.

The Cost of Equity of Flexdeal SIMFE SA (FLEXD.LS) is 7.15%.

The Cost of Debt of Flexdeal SIMFE SA (FLEXD.LS) is 5.15%.

	Range	Selected
Cost of equity	6.00% - 8.30%	7.15%
Tax rate	10.60% - 19.50%	15.05%
Cost of debt	4.00% - 6.30%	5.15%
WACC	5.8% - 8.0%	6.9%

WACC

FLEXD.LS WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.45	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	8.30%

Tax rate	10.60%	19.50%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.00%	6.30%

After-tax WACC	5.8%	8.0%


Selected WACC	6.9%

FLEXD.LS'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 FLEXD.LS:

cost_of_equity (7.15%) = risk_free_rate (3.15%) + equity_risk_premium (7.35%) * adjusted_beta (0.45) + 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.