WHA.AS WACC - Weighted Average Cost of Capital
The WACC of Wereldhave NV (WHA.AS) is 6.0%.
| Range | Selected | |
| Cost of equity | 6.4% - 10.0% | 8.2% |
| Tax rate | 0.5% - 0.7% | 0.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.0% - 7.0% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.75 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 10.0% |
| Tax rate | 0.5% | 0.7% |
| Debt/Equity ratio | 1.23 | 1.23 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.0% | 7.0% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WHA.AS | Wereldhave NV | 1.23 | 0.51 | 0.23 |
| BLND.L | British Land Company PLC | 0.59 | 0.86 | 0.54 |
| CAPC.L | Capital & Counties Properties PLC | 0.67 | 1.36 | 0.82 |
| ECMPA.AS | Eurocommercial Properties NV | 1.11 | 0.51 | 0.24 |
| IGD.MI | Immobiliare Grande Distribuzione SIIQ SpA | 2.45 | 0.62 | 0.18 |
| MERY.PA | Mercialys SA | 1.35 | 0.22 | 0.09 |
| NRR.L | Newriver Reit PLC | 1.01 | 0.92 | 0.46 |
| RET.BR | Retail Estates NV | 0.95 | 0.59 | 0.3 |
| SHB.L | Shaftesbury PLC | 0.6 | 0.95 | 0.6 |
| YPR2.MC | Corpfin Capital Prime Retail II Socimi SA | 0.63 | 1.07 | 0.65 |
| Low | High | |
| Unlevered beta | 0.28 | 0.49 |
| Relevered beta | 0.63 | 1.09 |
| Adjusted relevered beta | 0.75 | 1.06 |
WHA.AS'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 WHA.AS:
cost_of_equity (8.20%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.75) + 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.