ADN
Advent Technologies Holdings Inc
Price:  
2.04 
USD
Volume:  
103,383.00
United States | Electrical Equipment
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ADN WACC - Weighted Average Cost of Capital

The WACC of Advent Technologies Holdings Inc (ADN) is 7.9%.

The Cost of Equity of Advent Technologies Holdings Inc (ADN) is 8.00%.
The Cost of Debt of Advent Technologies Holdings Inc (ADN) is 7.00%.

Range Selected
Cost of equity 6.60% - 9.40% 8.00%
Tax rate 0.20% - 1.10% 0.65%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.6% - 9.2% 7.9%
WACC

ADN WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.59 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 9.40%
Tax rate 0.20% 1.10%
Debt/Equity ratio 0.1 0.1
Cost of debt 7.00% 7.00%
After-tax WACC 6.6% 9.2%
Selected WACC 7.9%

ADN'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 ADN:

cost_of_equity (8.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.59) + 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.