SMAR.BR
Smartphoto Group NV
Price:  
28.40 
EUR
Volume:  
305.00
Belgium | Commercial Services & Supplies
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SMAR.BR WACC - Weighted Average Cost of Capital

The WACC of Smartphoto Group NV (SMAR.BR) is 6.5%.

The Cost of Equity of Smartphoto Group NV (SMAR.BR) is 6.60%.
The Cost of Debt of Smartphoto Group NV (SMAR.BR) is 4.25%.

Range Selected
Cost of equity 5.50% - 7.70% 6.60%
Tax rate 21.10% - 22.70% 21.90%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.4% - 7.5% 6.5%
WACC

SMAR.BR WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.44 0.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 7.70%
Tax rate 21.10% 22.70%
Debt/Equity ratio 0.04 0.04
Cost of debt 4.00% 4.50%
After-tax WACC 5.4% 7.5%
Selected WACC 6.5%

SMAR.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 SMAR.BR:

cost_of_equity (6.60%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * 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.