SEC.MC WACC - Weighted Average Cost of Capital
The WACC of Secuoya Grupo de Comunicacion SA (SEC.MC) is 7.0%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.3% | 7.25% |
| Tax rate | 16.4% - 22.1% | 19.25% |
| Cost of debt | 6.7% - 8.7% | 7.7% |
| WACC | 6.0% - 7.9% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.41 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.3% |
| Tax rate | 16.4% | 22.1% |
| Debt/Equity ratio | 0.39 | 0.39 |
| Cost of debt | 6.7% | 8.7% |
| After-tax WACC | 6.0% | 7.9% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SEC.MC | Secuoya Grupo de Comunicacion SA | 0.39 | 0.13 | 0.1 |
| 4FM.WA | 4Fun Media SA | 0.57 | 0.73 | 0.5 |
| CMX.L | Catalyst Media Group PLC | 0 | 1.34 | 1.34 |
| IME.L | Immedia Group PLC | 0.01 | 0.84 | 0.83 |
| IPR.LS | Impresa Sociedade Gestora de Participacoes Sociais SA | 5.58 | 0.49 | 0.09 |
| KPL.WA | Kino Polska TV SA | 0.03 | 0.11 | 0.1 |
| MCP.LS | Grupo Media Capital SGPS SA | 0.19 | -1.8 | -1.57 |
| STVG.L | STV Group PLC | 0.85 | 0.55 | 0.33 |
| VIV.WA | Euroinvestment SA | 0.21 | 0 | 0 |
| WIG1.DE | Sporttotal AG | 22.31 | -0.1 | -0.01 |
| Low | High | |
| Unlevered beta | 0.1 | 0.19 |
| Relevered beta | 0.12 | 0.25 |
| Adjusted relevered beta | 0.41 | 0.5 |
SEC.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 SEC.MC:
cost_of_equity (7.25%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.41) + 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.