PRX.AS WACC - Weighted Average Cost of Capital

The WACC of Prosus NV (PRX.AS) is 8.2%.

The Cost of Equity of Prosus NV (PRX.AS) is 7.50%.

The Cost of Debt of Prosus NV (PRX.AS) is 13.40%.

	Range	Selected
Cost of equity	6.00% - 9.00%	7.50%
Tax rate	0.70% - 1.40%	1.05%
Cost of debt	4.20% - 22.60%	13.40%
WACC	5.7% - 10.8%	8.2%

WACC

PRX.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.67	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	9.00%

Tax rate	0.70%	1.40%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.20%	22.60%

After-tax WACC	5.7%	10.8%


Selected WACC	8.2%

PRX.AS'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 PRX.AS:

cost_of_equity (7.50%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.67) + 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.