AGR.VI
Agrana Beteiligungs AG
Price:  
11.60 
EUR
Volume:  
4,961.00
Austria | Food Products
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AGR.VI WACC - Weighted Average Cost of Capital

The WACC of Agrana Beteiligungs AG (AGR.VI) is 5.4%.

The Cost of Equity of Agrana Beteiligungs AG (AGR.VI) is 7.45%.
The Cost of Debt of Agrana Beteiligungs AG (AGR.VI) is 6.00%.

Range Selected
Cost of equity 6.10% - 8.80% 7.45%
Tax rate 34.00% - 46.40% 40.20%
Cost of debt 4.00% - 8.00% 6.00%
WACC 4.4% - 6.5% 5.4%
WACC

AGR.VI WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.7% 6.7%
Adjusted beta 0.59 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 8.80%
Tax rate 34.00% 46.40%
Debt/Equity ratio 1.02 1.02
Cost of debt 4.00% 8.00%
After-tax WACC 4.4% 6.5%
Selected WACC 5.4%

AGR.VI'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 AGR.VI:

cost_of_equity (7.45%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * 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.