ECP.TA WACC - Weighted Average Cost of Capital

The WACC of Electra Consumer Products 1970 Ltd (ECP.TA) is 9.6%.

The Cost of Equity of Electra Consumer Products 1970 Ltd (ECP.TA) is 15.50%.

The Cost of Debt of Electra Consumer Products 1970 Ltd (ECP.TA) is 8.25%.

	Range	Selected
Cost of equity	11.70% - 19.30%	15.50%
Tax rate	15.40% - 23.60%	19.50%
Cost of debt	6.40% - 10.10%	8.25%
WACC	7.5% - 11.6%	9.6%

WACC

ECP.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.13	1.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	19.30%

Tax rate	15.40%	23.60%
Debt/Equity ratio	1.95	1.95
Cost of debt	6.40%	10.10%

After-tax WACC	7.5%	11.6%


Selected WACC	9.6%

ECP.TA'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 ECP.TA:

cost_of_equity (15.50%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.13) + 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.