YTST.MC WACC - Weighted Average Cost of Capital
The WACC of Testa Residencial SOCIMI SA (YTST.MC) is 10.8%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.0% | 6.2% |
| Tax rate | 0.5% - 0.6% | 0.55% |
| Cost of debt | 4.0% - 20.1% | 12.05% |
| WACC | 4.3% - 17.4% | 10.8% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.31 | 0.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.0% |
| Tax rate | 0.5% | 0.6% |
| Debt/Equity ratio | 4.12 | 4.12 |
| Cost of debt | 4.0% | 20.1% |
| After-tax WACC | 4.3% | 17.4% |
| Selected WACC | 10.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| YTST.MC | Testa Residencial SOCIMI SA | 4.12 | -0.01 | 0 |
| AMMN.DE | Grounds Real Estate Development AG | 19.08 | 1.08 | 0.05 |
| CBA.L | Ceiba Investments Ltd | 0.8 | 0.3 | 0.17 |
| SPDI.L | Secure Property Development & Investment PLC | 0.18 | -1.12 | -0.95 |
| YATO.MC | Atom Hoteles Socimi SA | 0.65 | 0.01 | 0.01 |
| YEXR.MC | Excem Capital Partners Sociedad de Inversion Residencial Socimi SA | 1.34 | -0.18 | -0.08 |
| YFID.MC | Fidere Patrimonio SOCIMI SAU | 1.62 | -0.1 | -0.04 |
| YP3L.MC | P3 Spain Logistic Parks SOCIMI SA | 0.08 | 0.08 | 0.08 |
| YTAR.MC | Tarjar Xairo Socimi SA | 0.44 | 0.01 | 0 |
| YTRI.MC | Trivium Real Estate Socimi SA | 0.86 | -0.03 | -0.01 |
| Low | High | |
| Unlevered beta | -0.01 | 0.01 |
| Relevered beta | -0.03 | 0.03 |
| Adjusted relevered beta | 0.31 | 0.35 |
YTST.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 YTST.MC:
cost_of_equity (6.20%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.31) + 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.