Ren Redes Energeticas Nacionais SGPS SA (RENE.LS) WACC Analysis

As of June 16, 2025, Ren Redes Energeticas Nacionais SGPS SA (RENE.LS) carries a Weighted Average Cost of Capital (WACC) of 5.9%. WACC reflects the blended rate Ren Redes Energeticas Nacionais SGPS SA must pay to both equity and debt holders.

Within that, the cost of equity is 7.5%, the cost of debt is 5.0%, and the effective tax rate is 22.5%.

Breakdown of WACC Components

• Long-term bond rate: 2.9% – 3.4%
• Equity market risk premium: 6.9% – 7.8%
• Adjusted beta: 0.67 – 0.72
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.25

What It Means for Investors

With a selected WACC of 5.9%, Ren Redes Energeticas Nacionais SGPS SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.