YADV.MC WACC - Weighted Average Cost of Capital
The WACC of ADVERO Properties Socimi SA (YADV.MC) is 7.5%.
| Range | Selected | |
| Cost of equity | 6.4% - 10.2% | 8.3% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 4.0% - 6.2% | 5.1% |
| WACC | 5.8% - 9.3% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.44 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 10.2% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 4.0% | 6.2% |
| After-tax WACC | 5.8% | 9.3% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| YADV.MC | ADVERO Properties Socimi SA | 0.19 | -0.07 | -0.06 |
| ALDV.PA | Alliance Developpement Capital SIIC SE | 0.03 | 1.18 | 1.15 |
| HLGYO.IS | Halk Gayrimenkul Yatirim Ortakligi AS | 0.21 | 1.11 | 0.96 |
| IDGYO.IS | Idealist Gayrimenkul Yatirim Ortakligi AS | 0.01 | 1.03 | 1.03 |
| KCR.L | KCR Residential REIT PLC | 4.39 | 0.17 | 0.04 |
| RESI.L | Residential Secure Income PLC | 2.05 | 0.76 | 0.3 |
| TDGYO.IS | Trend Gayrimenkul Yatirim Ortakligi AS | 0.05 | 0.85 | 0.82 |
| YBAR.MC | Barcino Property SOCIMI SA | 0.39 | -0.02 | -0.02 |
| YOVA.MC | Optimum III Value Added Residential SOCIMI SA | 0.97 | 0.14 | 0.08 |
| YVBA.MC | VBARE Iberian Properties SOCIMI SA | 0.63 | 0.28 | 0.19 |
| Low | High | |
| Unlevered beta | 0.15 | 0.51 |
| Relevered beta | 0.16 | 0.58 |
| Adjusted relevered beta | 0.44 | 0.72 |
YADV.MC'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 YADV.MC:
cost_of_equity (8.30%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.44) + 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.