The WACC of VBARE Iberian Properties SOCIMI SA (YVBA.MC) is 6.5%.
Range | Selected | |
Cost of equity | 6.7% - 9.7% | 8.2% |
Tax rate | 25.0% - 25.0% | 25% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.6% - 7.4% | 6.5% |
Category | Low | High |
Long-term bond rate | 3.1% | 3.6% |
Equity market risk premium | 7.4% | 8.4% |
Adjusted beta | 0.49 | 0.66 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.7% | 9.7% |
Tax rate | 25.0% | 25.0% |
Debt/Equity ratio | 0.63 | 0.63 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.6% | 7.4% |
Selected WACC | 6.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
YVBA.MC | VBARE Iberian Properties SOCIMI SA | 0.63 | 0.28 | 0.19 |
ALDV.PA | Alliance Developpement Capital SIIC SE | 0.08 | 0.49 | 0.46 |
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 | 2.9 | 0.36 | 0.11 |
RESI.L | Residential Secure Income PLC | 1.9 | 0.61 | 0.25 |
TDGYO.IS | Trend Gayrimenkul Yatirim Ortakligi AS | 0.05 | 0.85 | 0.82 |
YADV.MC | ADVERO Properties Socimi SA | 0.18 | -0.08 | -0.07 |
YBAR.MC | Barcino Property SOCIMI SA | 0.39 | -0.03 | -0.02 |
YOVA.MC | Optimum III Value Added Residential SOCIMI SA | 0.97 | 0.14 | 0.08 |
Low | High | |
Unlevered beta | 0.16 | 0.34 |
Relevered beta | 0.24 | 0.49 |
Adjusted relevered beta | 0.49 | 0.66 |
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 YVBA.MC:
cost_of_equity (8.20%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.49) + 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.