SPIR.AT WACC - Weighted Average Cost of Capital

The WACC of House of Agriculture Spirou SA (SPIR.AT) is 5.2%.

The Cost of Equity of House of Agriculture Spirou SA (SPIR.AT) is 7.90%.

The Cost of Debt of House of Agriculture Spirou SA (SPIR.AT) is 5.50%.

	Range	Selected
Cost of equity	6.40% - 9.40%	7.90%
Tax rate	6.50% - 28.10%	17.30%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.3% - 6.0%	5.2%

WACC

SPIR.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.35	0.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	9.40%

Tax rate	6.50%	28.10%
Debt/Equity ratio	3.59	3.59
Cost of debt	4.00%	7.00%

After-tax WACC	4.3%	6.0%


Selected WACC	5.2%

SPIR.AT'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 SPIR.AT:

cost_of_equity (7.90%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.35) + 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.