ROOD.AS WACC - Weighted Average Cost of Capital

The WACC of RoodMicrotec N.V. (ROOD.AS) is 6.2%.

The Cost of Equity of RoodMicrotec N.V. (ROOD.AS) is 6.45%.

The Cost of Debt of RoodMicrotec N.V. (ROOD.AS) is 4.30%.

	Range	Selected
Cost of equity	4.90% - 8.00%	6.45%
Tax rate	11.60% - 20.90%	16.25%
Cost of debt	4.00% - 4.60%	4.30%
WACC	4.7% - 7.6%	6.2%

WACC

ROOD.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.45	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	8.00%

Tax rate	11.60%	20.90%
Debt/Equity ratio	0.1	0.1
Cost of debt	4.00%	4.60%

After-tax WACC	4.7%	7.6%


Selected WACC	6.2%

ROOD.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 ROOD.AS:

cost_of_equity (6.45%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.45) + 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.