BYTE.AT
Byte Computer SA
Price:  
3.5 
EUR
Volume:  
14,536
Greece | IT Services

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 9.6%.
The Cost of Debt of Byte Computer SA (BYTE.AT) is 6.15%.

RangeSelected
Cost of equity8.6% - 10.6%9.6%
Tax rate12.1% - 14.1%13.1%
Cost of debt4.7% - 7.6%6.15%
WACC8.2% - 10.2%9.2%
WACC

BYTE.AT WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium11.0%12.0%
Adjusted beta0.430.47
Additional risk adjustments0.0%0.5%
Cost of equity8.6%10.6%
Tax rate12.1%14.1%
Debt/Equity ratio
0.10.1
Cost of debt4.7%7.6%
After-tax WACC8.2%10.2%
Selected WACC9.2%

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.