HEIJM.AS WACC - Weighted Average Cost of Capital
The WACC of Heijmans NV (HEIJM.AS) is 7.2%.
| Range | Selected | |
| Cost of equity | 5.8% - 9.0% | 7.4% |
| Tax rate | 14.5% - 20.3% | 17.4% |
| Cost of debt | 4.0% - 6.8% | 5.4% |
| WACC | 5.6% - 8.7% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.63 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 9.0% |
| Tax rate | 14.5% | 20.3% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 4.0% | 6.8% |
| After-tax WACC | 5.6% | 8.7% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HEIJM.AS | Heijmans NV | 0.07 | 1.31 | 1.24 |
| AST.MI | Astaldi SpA | 0.57 | 1.08 | 0.74 |
| B5A.DE | Bauer AG | 2 | 0.64 | 0.24 |
| BDX.WA | Budimex SA | 0.02 | 1.08 | 1.07 |
| COST.L | Costain Group PLC | 0.07 | 0.89 | 0.85 |
| ELLAKTOR.AT | Ellaktor SA | 1.07 | 1.02 | 0.54 |
| GEKTERNA.AT | GEK TERNA Holdings Real Estate Construction SA | 2.25 | 0.67 | 0.23 |
| GFRD.L | Galliford Try Holdings PLC | 0.13 | 1.03 | 0.93 |
| ORANW.AS | Oranjewoud NV | 1.21 | 0.33 | 0.17 |
| PAAL B.CO | Per Aarsleff Holding A/S | 0.14 | 0.19 | 0.17 |
| Low | High | |
| Unlevered beta | 0.42 | 0.78 |
| Relevered beta | 0.45 | 0.82 |
| Adjusted relevered beta | 0.63 | 0.88 |
HEIJM.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 HEIJM.AS:
cost_of_equity (7.40%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * 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.