STRN.AS WACC - Weighted Average Cost of Capital

The WACC of Stern Groep NV (STRN.AS) is 7.4%.

The Cost of Equity of Stern Groep NV (STRN.AS) is 16.00%.

The Cost of Debt of Stern Groep NV (STRN.AS) is 6.15%.

	Range	Selected
Cost of equity	13.90% - 18.10%	16.00%
Tax rate	24.60% - 44.30%	34.45%
Cost of debt	4.00% - 8.30%	6.15%
WACC	6.2% - 8.6%	7.4%

WACC

STRN.AS WACC calculation

Category	Low	High

Long-term bond rate	2.3%	2.8%
Equity market risk premium	6.6%	7.6%
Adjusted beta	1.75	1.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	18.10%

Tax rate	24.60%	44.30%
Debt/Equity ratio	2.4	2.4
Cost of debt	4.00%	8.30%

After-tax WACC	6.2%	8.6%


Selected WACC	7.4%

STRN.AS'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 STRN.AS:

cost_of_equity (16.00%) = risk_free_rate (2.55%) + equity_risk_premium (7.10%) * adjusted_beta (1.75) + 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.