UPP.DB WACC - Weighted Average Cost of Capital
The WACC of Union Properties PJSC (UPP.DB) is 9.0%.
| Range | Selected | |
| Cost of equity | 8.4% - 10.2% | 9.3% |
| Tax rate | 33.0% - 55.0% | 44% |
| Cost of debt | 4.7% - 25.9% | 15.3% |
| WACC | 7.7% - 10.4% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.43 | 0.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 10.2% |
| Tax rate | 33.0% | 55.0% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 4.7% | 25.9% |
| After-tax WACC | 7.7% | 10.4% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| UPP.DB | Union Properties PJSC | 0.16 | 0.44 | 0.41 |
| 508996.BO | Satra Properties (India) Ltd | 5.72 | 0.76 | 0.21 |
| 526727.BO | Garnet Construction Ltd | 0.21 | -0.68 | -0.62 |
| CIG.VN | Coma 18 JSC | 0.42 | -0.08 | -0.07 |
| CLG.VN | Cotec Investment and Land House Development JSC | 2.46 | -0.04 | -0.02 |
| D11.VN | Real Estate 11 JSC | 0.08 | 0.21 | 0.21 |
| DART.JK | Duta Anggada Realty Tbk PT | 7.58 | 0.6 | 0.14 |
| IDVP.ME | Invest-Development PAO | 0 | 0.82 | 0.82 |
| JCK.BK | JCK International PCL | 12.09 | 0.94 | 0.15 |
| PRECHA.BK | Preecha Group PCL | 0.58 | 1.6 | 1.27 |
| Low | High | |
| Unlevered beta | 0.14 | 0.21 |
| Relevered beta | 0.15 | 0.22 |
| Adjusted relevered beta | 0.43 | 0.48 |
UPP.DB'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 UPP.DB:
cost_of_equity (9.30%) = risk_free_rate (6.15%) + equity_risk_premium (6.30%) * adjusted_beta (0.43) + 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.