UBS.MC
Urbas Grupo Financiero SA
Price:  
0.00 
EUR
Volume:  
28,542,284.00
Spain | Real Estate Management & Development
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

UBS.MC WACC - Weighted Average Cost of Capital

The WACC of Urbas Grupo Financiero SA (UBS.MC) is 4.5%.

The Cost of Equity of Urbas Grupo Financiero SA (UBS.MC) is 6.85%.
The Cost of Debt of Urbas Grupo Financiero SA (UBS.MC) is 4.25%.

Range Selected
Cost of equity 5.30% - 8.40% 6.85%
Tax rate 4.70% - 10.30% 7.50%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.1% - 4.9% 4.5%
WACC

UBS.MC WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.3 0.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.30% 8.40%
Tax rate 4.70% 10.30%
Debt/Equity ratio 4.08 4.08
Cost of debt 4.00% 4.50%
After-tax WACC 4.1% 4.9%
Selected WACC 4.5%

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 (6.85%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.3) + 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.