AEGN.AT WACC - Weighted Average Cost of Capital

The WACC of Aegean Airlines SA (AEGN.AT) is 8.5%.

The Cost of Equity of Aegean Airlines SA (AEGN.AT) is 16.10%.

The Cost of Debt of Aegean Airlines SA (AEGN.AT) is 5.30%.

	Range	Selected
Cost of equity	12.90% - 19.30%	16.10%
Tax rate	22.40% - 23.60%	23.00%
Cost of debt	4.80% - 5.80%	5.30%
WACC	7.1% - 9.9%	8.5%

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	1.09	1.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	19.30%

Tax rate	22.40%	23.60%
Debt/Equity ratio	1.71	1.71
Cost of debt	4.80%	5.80%

After-tax WACC	7.1%	9.9%


Selected WACC	8.5%

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 (16.10%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (1.09) + 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.