YEIS.MC WACC - Weighted Average Cost of Capital

The WACC of Elaia Investment Spain Socimi SA (YEIS.MC) is 6.6%.

The Cost of Equity of Elaia Investment Spain Socimi SA (YEIS.MC) is 7.85%.

The Cost of Debt of Elaia Investment Spain Socimi SA (YEIS.MC) is 6.15%.

	Range	Selected
Cost of equity	5.90% - 9.80%	7.85%
Tax rate	8.70% - 16.20%	12.45%
Cost of debt	4.00% - 8.30%	6.15%
WACC	4.8% - 8.4%	6.6%

WACC

YEIS.MC WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.38	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	9.80%

Tax rate	8.70%	16.20%
Debt/Equity ratio	0.92	0.92
Cost of debt	4.00%	8.30%

After-tax WACC	4.8%	8.4%


Selected WACC	6.6%

YEIS.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 YEIS.MC:

cost_of_equity (7.85%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.38) + 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.