TL5.MC WACC - Weighted Average Cost of Capital

The WACC of Mediaset Espana Comunicacion SA (TL5.MC) is 15.3%.

The Cost of Equity of Mediaset Espana Comunicacion SA (TL5.MC) is 10.75%.

The Cost of Debt of Mediaset Espana Comunicacion SA (TL5.MC) is 218.40%.

	Range	Selected
Cost of equity	9.60% - 11.90%	10.75%
Tax rate	21.00% - 21.30%	21.15%
Cost of debt	4.00% - 432.80%	218.40%
WACC	9.4% - 21.2%	15.3%

WACC

TL5.MC WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.87	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	11.90%

Tax rate	21.00%	21.30%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	432.80%

After-tax WACC	9.4%	21.2%


Selected WACC	15.3%

TL5.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 TL5.MC:

cost_of_equity (10.75%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.87) + 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.