The WACC of Iaso Private General Obstetric Gynecological & Paediatrics Clinic Diagnostic Therapeutic & Research Center SA (IASO.AT) is 10.0%.
| Range | Selected | |
| Cost of equity | 10.00% - 12.80% | 11.40% |
| Tax rate | 26.40% - 28.40% | 27.40% |
| Cost of debt | 4.00% - 13.80% | 8.90% |
| WACC | 8.0% - 12.0% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 4.4% | 4.9% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.68 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.00% | 12.80% |
| Tax rate | 26.40% | 28.40% |
| Debt/Equity ratio | 0.39 | 0.39 |
| Cost of debt | 4.00% | 13.80% |
| After-tax WACC | 8.0% | 12.0% |
| Selected WACC | 10.0% | |
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 IASO.AT:
cost_of_equity (11.40%) = risk_free_rate (4.65%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.