BIOKA.AT WACC - Weighted Average Cost of Capital

The WACC of Biokarpet Industrial and Commercial Enterprises SA (BIOKA.AT) is 7.6%.

The Cost of Equity of Biokarpet Industrial and Commercial Enterprises SA (BIOKA.AT) is 13.60%.

The Cost of Debt of Biokarpet Industrial and Commercial Enterprises SA (BIOKA.AT) is 6.65%.

	Range	Selected
Cost of equity	11.80% - 15.40%	13.60%
Tax rate	15.50% - 23.40%	19.45%
Cost of debt	4.70% - 8.60%	6.65%
WACC	6.2% - 9.0%	7.6%

WACC

BIOKA.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.97	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	15.40%

Tax rate	15.50%	23.40%
Debt/Equity ratio	2.58	2.58
Cost of debt	4.70%	8.60%

After-tax WACC	6.2%	9.0%


Selected WACC	7.6%

BIOKA.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 BIOKA.AT:

cost_of_equity (13.60%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.97) + 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.