CENTR.AT WACC - Weighted Average Cost of Capital

The WACC of Centric Holdings SA (CENTR.AT) is 7.4%.

The Cost of Equity of Centric Holdings SA (CENTR.AT) is 8.25%.

The Cost of Debt of Centric Holdings SA (CENTR.AT) is 4.75%.

	Range	Selected
Cost of equity	6.90% - 9.60%	8.25%
Tax rate	10.80% - 21.10%	15.95%
Cost of debt	4.00% - 5.50%	4.75%
WACC	6.2% - 8.6%	7.4%

WACC

CENTR.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.41	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	9.60%

Tax rate	10.80%	21.10%
Debt/Equity ratio	0.24	0.24
Cost of debt	4.00%	5.50%

After-tax WACC	6.2%	8.6%


Selected WACC	7.4%

CENTR.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 CENTR.AT:

cost_of_equity (8.25%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.41) + 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.