UBS.MC
Urbas Grupo Financiero SA
Price:  
EUR
Volume:  
28,542,284
Spain | Real Estate Management & Development

UBS.MC WACC - Weighted Average Cost of Capital

The WACC of Urbas Grupo Financiero SA (UBS.MC) is 4.6%.

The Cost of Equity of Urbas Grupo Financiero SA (UBS.MC) is 7.1%.
The Cost of Debt of Urbas Grupo Financiero SA (UBS.MC) is 4.25%.

RangeSelected
Cost of equity5.6% - 8.6%7.1%
Tax rate4.7% - 10.3%7.5%
Cost of debt4.0% - 4.5%4.25%
WACC4.2% - 4.9%4.6%
WACC

UBS.MC WACC calculation

CategoryLowHigh
Long-term bond rate3.1%3.6%
Equity market risk premium7.4%8.4%
Adjusted beta0.340.54
Additional risk adjustments0.0%0.5%
Cost of equity5.6%8.6%
Tax rate4.7%10.3%
Debt/Equity ratio
4.084.08
Cost of debt4.0%4.5%
After-tax WACC4.2%4.9%
Selected WACC4.6%

UBS.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 UBS.MC:

cost_of_equity (7.10%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.34) + 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.