POS.VI WACC - Weighted Average Cost of Capital

The WACC of Porr AG (POS.VI) is 9.3%.

The Cost of Equity of Porr AG (POS.VI) is 7.55%.

The Cost of Debt of Porr AG (POS.VI) is 17.75%.

	Range	Selected
Cost of equity	6.00% - 9.10%	7.55%
Tax rate	24.90% - 25.90%	25.40%
Cost of debt	15.70% - 19.80%	17.75%
WACC	7.8% - 10.9%	9.3%

WACC

POS.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.56	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	9.10%

Tax rate	24.90%	25.90%
Debt/Equity ratio	0.47	0.47
Cost of debt	15.70%	19.80%

After-tax WACC	7.8%	10.9%


Selected WACC	9.3%

POS.VI'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 POS.VI:

cost_of_equity (7.55%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.56) + 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.