GVNV.AS WACC - Weighted Average Cost of Capital

The WACC of Grandvision NV (GVNV.AS) is 6.7%.

The Cost of Equity of Grandvision NV (GVNV.AS) is 7.75%.

The Cost of Debt of Grandvision NV (GVNV.AS) is 4.25%.

	Range	Selected
Cost of equity	6.50% - 9.00%	7.75%
Tax rate	28.30% - 28.90%	28.60%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.7% - 7.7%	6.7%

WACC

GVNV.AS WACC calculation

Category	Low	High

Long-term bond rate	2.3%	2.8%
Equity market risk premium	6.6%	7.6%
Adjusted beta	0.63	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	9.00%

Tax rate	28.30%	28.90%
Debt/Equity ratio	0.28	0.28
Cost of debt	4.00%	4.50%

After-tax WACC	5.7%	7.7%


Selected WACC	6.7%

GVNV.AS'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 GVNV.AS:

cost_of_equity (7.75%) = risk_free_rate (2.55%) + equity_risk_premium (7.10%) * adjusted_beta (0.63) + 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.