GRE.MC
Grenergy Renovables SA
Price:  
51.10 
EUR
Volume:  
29,344.00
Spain | Independent Power and Renewable Electricity Producers
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GRE.MC WACC - Weighted Average Cost of Capital

The WACC of Grenergy Renovables SA (GRE.MC) is 6.8%.

The Cost of Equity of Grenergy Renovables SA (GRE.MC) is 7.35%.
The Cost of Debt of Grenergy Renovables SA (GRE.MC) is 6.75%.

Range Selected
Cost of equity 6.10% - 8.60% 7.35%
Tax rate 8.00% - 15.00% 11.50%
Cost of debt 5.20% - 8.30% 6.75%
WACC 5.6% - 8.0% 6.8%
WACC

GRE.MC WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.41 0.54
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 8.60%
Tax rate 8.00% 15.00%
Debt/Equity ratio 0.61 0.61
Cost of debt 5.20% 8.30%
After-tax WACC 5.6% 8.0%
Selected WACC 6.8%

GRE.MC'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 GRE.MC:

cost_of_equity (7.35%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.41) + 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.