VASTB.BR
Vastned Retail Belgium SA
Price:  
31.30 
EUR
Volume:  
37,692.00
Belgium | Equity Real Estate Investment Trusts (REITs)
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VASTB.BR WACC - Weighted Average Cost of Capital

The WACC of Vastned Retail Belgium SA (VASTB.BR) is 5.9%.

The Cost of Equity of Vastned Retail Belgium SA (VASTB.BR) is 6.20%.
The Cost of Debt of Vastned Retail Belgium SA (VASTB.BR) is 4.25%.

Range Selected
Cost of equity 5.20% - 7.20% 6.20%
Tax rate 0.20% - 0.40% 0.30%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.0% - 6.8% 5.9%
WACC

VASTB.BR WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.39 0.47
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.20% 7.20%
Tax rate 0.20% 0.40%
Debt/Equity ratio 0.17 0.17
Cost of debt 4.00% 4.50%
After-tax WACC 5.0% 6.8%
Selected WACC 5.9%

VASTB.BR'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 VASTB.BR:

cost_of_equity (6.20%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.