Picanol NV (PIC.BR) WACC Analysis

As of December 15, 2025, Picanol NV (PIC.BR) carries a Weighted Average Cost of Capital (WACC) of 55.6%. WACC reflects the blended rate Picanol NV must pay to both equity and debt holders.

Within that, the cost of equity is 8.9%, the cost of debt is 4.0%, and the effective tax rate is 21.8%.

Breakdown of WACC Components

• Long-term bond rate: 2.9% – 3.4%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 1 – 1.15
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.35

What It Means for Investors

With a selected WACC of 55.6%, Picanol NV must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.