FLEXD.LS WACC - Weighted Average Cost of Capital
The WACC of Flexdeal SIMFE SA (FLEXD.LS) is 6.9%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.3% | 7.05% |
| Tax rate | 10.6% - 19.5% | 15.05% |
| Cost of debt | 4.0% - 6.3% | 5.15% |
| WACC | 5.7% - 8.1% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.43 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.3% |
| Tax rate | 10.6% | 19.5% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 6.3% |
| After-tax WACC | 5.7% | 8.1% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FLEXD.LS | Flexdeal SIMFE SA | 0.08 | -0.09 | -0.08 |
| ADV.WA | Adiuvo Investments SA | 1.38 | -0.55 | -0.25 |
| ALTUR.PA | Altur Investissement SCA | 0 | 0.43 | 0.43 |
| DM.MI | Digital Magics SpA | 0.14 | 0.2 | 0.18 |
| EFF.DE | Deutsche Effecten und Wechsel Beteiligungsgesellschaft AG | 0.6 | -0.02 | -0.01 |
| JADE.L | Jade Road Investments Ltd | 6.64 | 1.86 | 0.27 |
| LOUD.HE | Loudspring Plc | 0.5 | 1.06 | 0.74 |
| LVEN.MI | LVenture Group SpA | 0.37 | 0.15 | 0.11 |
| MARKA.IS | Marka Yatirim Holding AS | 0 | 1.62 | 1.62 |
| VTI.WA | Venture Inc SA | 0 | 1.16 | 1.15 |
| Low | High | |
| Unlevered beta | 0.15 | 0.33 |
| Relevered beta | 0.15 | 0.36 |
| Adjusted relevered beta | 0.43 | 0.57 |
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 (7.05%) = risk_free_rate (3.15%) + equity_risk_premium (7.35%) * adjusted_beta (0.43) + 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.