AEGN.AT WACC - Weighted Average Cost of Capital

The WACC of Aegean Airlines SA (AEGN.AT) is 8.1%.

The Cost of Equity of Aegean Airlines SA (AEGN.AT) is 12.90%.

The Cost of Debt of Aegean Airlines SA (AEGN.AT) is 4.95%.

	Range	Selected
Cost of equity	10.20% - 15.60%	12.90%
Tax rate	22.50% - 23.70%	23.10%
Cost of debt	4.50% - 5.40%	4.95%
WACC	6.6% - 9.5%	8.1%

WACC

AEGN.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.78	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	15.60%

Tax rate	22.50%	23.70%
Debt/Equity ratio	1.13	1.13
Cost of debt	4.50%	5.40%

After-tax WACC	6.6%	9.5%


Selected WACC	8.1%

AEGN.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 AEGN.AT:

cost_of_equity (12.90%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.78) + 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.