VASTB.BR WACC - Weighted Average Cost of Capital

The WACC of Vastned Retail Belgium SA (VASTB.BR) is 7.0%.

The Cost of Equity of Vastned Retail Belgium SA (VASTB.BR) is 7.50%.

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

	Range	Selected
Cost of equity	5.90% - 9.10%	7.50%
Tax rate	0.20% - 0.40%	0.30%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.6% - 8.4%	7.0%

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	0.51	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	9.10%

Tax rate	0.20%	0.40%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.00%	4.50%

After-tax WACC	5.6%	8.4%


Selected WACC	7.0%

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 (7.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.51) + 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.