AAAK.AT
Wool Industry Tria Alfa SA
Price:  
7.7 
EUR
Volume:  
130
Greece | Textiles, Apparel & Luxury Goods

AAAK.AT WACC - Weighted Average Cost of Capital

The WACC of Wool Industry Tria Alfa SA (AAAK.AT) is 6.5%.

The Cost of Equity of Wool Industry Tria Alfa SA (AAAK.AT) is 7.15%.
The Cost of Debt of Wool Industry Tria Alfa SA (AAAK.AT) is 5.5%.

RangeSelected
Cost of equity6.4% - 7.9%7.15%
Tax rate23.2% - 24.0%23.6%
Cost of debt4.0% - 7.0%5.5%
WACC5.7% - 7.3%6.5%
WACC

AAAK.AT WACC calculation

CategoryLowHigh
Long-term bond rate3.3%3.8%
Equity market risk premium8.8%9.8%
Adjusted beta0.350.37
Additional risk adjustments0.0%0.5%
Cost of equity6.4%7.9%
Tax rate23.2%24.0%
Debt/Equity ratio
0.290.29
Cost of debt4.0%7.0%
After-tax WACC5.7%7.3%
Selected WACC6.5%

AAAK.AT'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 AAAK.AT:

cost_of_equity (7.15%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.35) + 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.