PRO.WA WACC - Weighted Average Cost of Capital
The WACC of APN Promise SA (PRO.WA) is 11.7%.
| Range | Selected | |
| Cost of equity | 10.6% - 12.8% | 11.7% |
| Tax rate | 9.8% - 18.0% | 13.9% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.6% - 12.7% | 11.7% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.81 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.6% | 12.8% |
| Tax rate | 9.8% | 18.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.6% | 12.7% |
| Selected WACC | 11.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PRO.WA | APN Promise SA | 0.01 | 1.16 | 1.15 |
| 4IG.BD | 4iG Nyrt | 1.67 | 1.07 | 0.43 |
| ALEMK.BR | Emakina Group SA | 0.14 | 1.49 | 1.32 |
| ALODI.PA | O2I SA | 1.63 | 1.81 | 0.74 |
| ALVIV.PA | Visiativ SA | 0.66 | 1.17 | 0.74 |
| CMP.WA | Comp SA | 0.13 | 0.74 | 0.66 |
| MUN.PA | Micropole SA | 1.1 | 0.87 | 0.44 |
| NBA.LS | Novabase SGPS SA | 0.1 | 0.31 | 0.29 |
| ORIGO.IC | Origo hf | 0.26 | 1.03 | 0.84 |
| SIILI.HE | Siili Solutions Oyj | 0.27 | 1.06 | 0.86 |
| Low | High | |
| Unlevered beta | 0.71 | 0.78 |
| Relevered beta | 0.72 | 0.78 |
| Adjusted relevered beta | 0.81 | 0.85 |
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 (11.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.81) + 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.