SCYR.MC WACC - Weighted Average Cost of Capital
The WACC of Sacyr SA (SCYR.MC) is 8.2%.
| Range | Selected | |
| Cost of equity | 16.3% - 23.5% | 19.9% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 4.3% - 7.9% | 6.1% |
| WACC | 6.4% - 10.1% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 1.77 | 2.3 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.3% | 23.5% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 3.16 | 3.16 |
| Cost of debt | 4.3% | 7.9% |
| After-tax WACC | 6.4% | 10.1% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SCYR.MC | Sacyr SA | 3.16 | 0.99 | 0.29 |
| BAMNB.AS | Koninklijke BAM Groep NV | 0.15 | 1.43 | 1.28 |
| BDX.WA | Budimex SA | 0.02 | 1.1 | 1.08 |
| ENO.MC | Elecnor SA | 0.14 | 1.23 | 1.11 |
| HEIJM.AS | Heijmans NV | 0.08 | 1.32 | 1.25 |
| IMPN.SW | Implenia AG | 0.67 | 0.78 | 0.52 |
| KIE.L | Kier Group PLC | 1.99 | 1.43 | 0.57 |
| NCC B.ST | NCC AB | 0.29 | 0.83 | 0.68 |
| POS.VI | Porr AG | 0.53 | 0.69 | 0.49 |
| WBD.MI | Webuild SpA | 0.81 | 1.17 | 0.73 |
| Low | High | |
| Unlevered beta | 0.64 | 0.87 |
| Relevered beta | 2.15 | 2.94 |
| Adjusted relevered beta | 1.77 | 2.3 |
SCYR.MC'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 SCYR.MC:
cost_of_equity (19.90%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (1.77) + 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.