The WACC of United International Enterprises Ltd (UIE.CO) is 7.3%.
Range | Selected | |
Cost of equity | 6.1% - 8.5% | 7.3% |
Tax rate | 19.2% - 21.4% | 20.3% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 6.1% - 8.5% | 7.3% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.66 | 0.78 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.1% | 8.5% |
Tax rate | 19.2% | 21.4% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 6.1% | 8.5% |
Selected WACC | 7.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
UIE.CO | United International Enterprises Ltd | 0 | 0.11 | 0.11 |
IMC.WA | IMC SA | 0.44 | 0.78 | 0.58 |
KAL.OL | Kalera AS | 0.58 | 0.91 | 0.62 |
KER.WA | Kernel Holding S.A. | 0.77 | 1.4 | 0.86 |
KWS.DE | KWS SAAT SE & Co KgaA | 0.32 | 0.35 | 0.28 |
LNA1L.VS | Linas Agro Group AB | 1.63 | 1.88 | 0.81 |
OIZ.IR | Origin Enterprises PLC | 0.65 | 0.56 | 0.37 |
RIN.PA | Vilmorin & Cie SA | 0.9 | 0.37 | 0.21 |
TACTR.IS | Tac Tarim Urunleri Hayvancilik Gida Sanayi ve Ticaret AS | 0.02 | 1.62 | 1.59 |
YAPRK.IS | Yaprak Sut ve Besi Ciftlikleri Sanayi ve Ticaret AS | 0.03 | 1.69 | 1.66 |
Low | High | |
Unlevered beta | 0.49 | 0.7 |
Relevered beta | 0.49 | 0.67 |
Adjusted relevered beta | 0.66 | 0.78 |
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 UIE.CO:
cost_of_equity (7.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.66) + 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.