BYTE.AT WACC - Weighted Average Cost of Capital

The WACC of Byte Computer SA (BYTE.AT) is 9.2%.

The Cost of Equity of Byte Computer SA (BYTE.AT) is 9.60%.

The Cost of Debt of Byte Computer SA (BYTE.AT) is 6.15%.

	Range	Selected
Cost of equity	8.60% - 10.60%	9.60%
Tax rate	12.10% - 14.10%	13.10%
Cost of debt	4.70% - 7.60%	6.15%
WACC	8.2% - 10.2%	9.2%

WACC

BYTE.AT WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	11.0%	12.0%
Adjusted beta	0.43	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	10.60%

Tax rate	12.10%	14.10%
Debt/Equity ratio	0.1	0.1
Cost of debt	4.70%	7.60%

After-tax WACC	8.2%	10.2%


Selected WACC	9.2%

BYTE.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 BYTE.AT:

cost_of_equity (9.60%) = risk_free_rate (4.15%) + equity_risk_premium (11.50%) * adjusted_beta (0.43) + 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.