PRO.WA WACC - Weighted Average Cost of Capital

The WACC of APN Promise SA (PRO.WA) is 11.8%.

The Cost of Equity of APN Promise SA (PRO.WA) is 11.85%.

The Cost of Debt of APN Promise SA (PRO.WA) is 5.00%.

	Range	Selected
Cost of equity	10.80% - 12.90%	11.85%
Tax rate	11.70% - 18.70%	15.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.7% - 12.8%	11.8%

WACC

PRO.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.83	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	12.90%

Tax rate	11.70%	18.70%
Debt/Equity ratio	0.01	0.01
Cost of debt	5.00%	5.00%

After-tax WACC	10.7%	12.8%


Selected WACC	11.8%

PRO.WA'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 PRO.WA:

cost_of_equity (11.85%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.83) + 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.