HOLCO.AS WACC - Weighted Average Cost of Capital

The WACC of Holland Colours NV (HOLCO.AS) is 6.1%.

The Cost of Equity of Holland Colours NV (HOLCO.AS) is 6.10%.

The Cost of Debt of Holland Colours NV (HOLCO.AS) is 8.60%.

	Range	Selected
Cost of equity	4.90% - 7.30%	6.10%
Tax rate	23.60% - 25.00%	24.30%
Cost of debt	7.00% - 10.20%	8.60%
WACC	4.9% - 7.3%	6.1%

WACC

HOLCO.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.45	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	7.30%

Tax rate	23.60%	25.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.00%	10.20%

After-tax WACC	4.9%	7.3%


Selected WACC	6.1%

HOLCO.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 HOLCO.AS:

cost_of_equity (6.10%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.45) + 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.