RAND.AS WACC - Weighted Average Cost of Capital

The WACC of Randstad NV (RAND.AS) is 5.8%.

The Cost of Equity of Randstad NV (RAND.AS) is 6.30%.

The Cost of Debt of Randstad NV (RAND.AS) is 5.00%.

	Range	Selected
Cost of equity	4.80% - 7.80%	6.30%
Tax rate	17.90% - 20.70%	19.30%
Cost of debt	5.00% - 5.00%	5.00%
WACC	4.6% - 6.9%	5.8%

WACC

RAND.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.44	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.80%	7.80%

Tax rate	17.90%	20.70%
Debt/Equity ratio	0.31	0.31
Cost of debt	5.00%	5.00%

After-tax WACC	4.6%	6.9%


Selected WACC	5.8%

RAND.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 RAND.AS:

cost_of_equity (6.30%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.44) + 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.