POS.VI WACC - Weighted Average Cost of Capital
The WACC of Porr AG (POS.VI) is 8.4%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.1% | 7.6% |
| Tax rate | 24.9% - 25.9% | 25.4% |
| Cost of debt | 11.3% - 15.7% | 13.5% |
| WACC | 6.9% - 10.0% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.59 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.1% |
| Tax rate | 24.9% | 25.9% |
| Debt/Equity ratio | 0.5 | 0.5 |
| Cost of debt | 11.3% | 15.7% |
| After-tax WACC | 6.9% | 10.0% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| POS.VI | Porr AG | 0.5 | 0.69 | 0.5 |
| CFEB.BR | Aannemingsmaatschappij CFE NV | 0.86 | 0.12 | 0.08 |
| GEKTERNA.AT | GEK TERNA Holdings Real Estate Construction SA | 2.25 | 0.67 | 0.25 |
| KIE.L | Kier Group PLC | 1.84 | 1.38 | 0.58 |
| NCC B.ST | NCC AB | 0.28 | 0.77 | 0.64 |
| ORANW.AS | Oranjewoud NV | 1.21 | 0.33 | 0.17 |
| PAAL B.CO | Per Aarsleff Holding A/S | 0.14 | 0.19 | 0.18 |
| PEAB B.ST | Peab AB | 0.72 | 0.81 | 0.53 |
| SCYR.MC | Sacyr SA | 3.08 | 0.99 | 0.3 |
| WBD.MI | Webuild SpA | 0.76 | 1.18 | 0.75 |
| Low | High | |
| Unlevered beta | 0.28 | 0.51 |
| Relevered beta | 0.39 | 0.7 |
| Adjusted relevered beta | 0.59 | 0.8 |
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 (7.60%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.59) + 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.