SHUR.BR WACC - Weighted Average Cost of Capital

The WACC of Shurgard Self Storage SA (SHUR.BR) is 5.5%.

The Cost of Equity of Shurgard Self Storage SA (SHUR.BR) is 6.55%.

The Cost of Debt of Shurgard Self Storage SA (SHUR.BR) is 4.25%.

	Range	Selected
Cost of equity	5.70% - 7.40%	6.55%
Tax rate	23.90% - 25.60%	24.75%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.9% - 6.1%	5.5%

WACC

SHUR.BR WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.47	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	7.40%

Tax rate	23.90%	25.60%
Debt/Equity ratio	0.46	0.46
Cost of debt	4.00%	4.50%

After-tax WACC	4.9%	6.1%


Selected WACC	5.5%

SHUR.BR'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 SHUR.BR:

cost_of_equity (6.55%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.47) + 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.