GVR.IR WACC - Weighted Average Cost of Capital
The WACC of Glenveagh Properties PLC (GVR.IR) is 7.0%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.6% | 7.3% |
| Tax rate | 14.4% - 15.3% | 14.85% |
| Cost of debt | 4.0% - 10.0% | 7% |
| WACC | 5.5% - 8.6% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.55 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.6% |
| Tax rate | 14.4% | 15.3% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 4.0% | 10.0% |
| After-tax WACC | 5.5% | 8.6% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GVR.IR | Glenveagh Properties PLC | 0.24 | 1.14 | 0.95 |
| 1AT.WA | Atal SA | 0.1 | 0.07 | 0.07 |
| ASP.PA | AST Groupe SA | 0.96 | 1.29 | 0.71 |
| BESQ.ST | Besqab AB (publ) | 2.04 | 0.53 | 0.19 |
| BOOT.L | Henry Boot PLC | 0.26 | 0.02 | 0.02 |
| CRN.L | Cairn Homes PLC | 0.14 | 0.87 | 0.77 |
| DOM.WA | Dom Development SA | 0.12 | 0.36 | 0.33 |
| GLE.L | MJ Gleeson PLC | 0.02 | 0.66 | 0.65 |
| H5E.DE | HELMA Eigenheimbau AG | 222.16 | -0.76 | 0 |
| SPR.L | Springfield Properties PLC | 0.52 | 0.51 | 0.35 |
| Low | High | |
| Unlevered beta | 0.27 | 0.47 |
| Relevered beta | 0.33 | 0.57 |
| Adjusted relevered beta | 0.55 | 0.71 |
GVR.IR'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 GVR.IR:
cost_of_equity (7.30%) = risk_free_rate (2.95%) + equity_risk_premium (6.50%) * adjusted_beta (0.55) + 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.