CPI.AT
CPI SA
Price:  
0.61 
EUR
Volume:  
2,755.00
Greece | Electronic Equipment, Instruments & Components
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CPI.AT WACC - Weighted Average Cost of Capital

The WACC of CPI SA (CPI.AT) is 8.2%.

The Cost of Equity of CPI SA (CPI.AT) is 9.30%.
The Cost of Debt of CPI SA (CPI.AT) is 8.55%.

Range Selected
Cost of equity 7.70% - 10.90% 9.30%
Tax rate 17.00% - 20.90% 18.95%
Cost of debt 5.30% - 11.80% 8.55%
WACC 6.2% - 10.2% 8.2%
WACC

CPI.AT WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 8.8% 9.8%
Adjusted beta 0.5 0.68
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.90%
Tax rate 17.00% 20.90%
Debt/Equity ratio 0.89 0.89
Cost of debt 5.30% 11.80%
After-tax WACC 6.2% 10.2%
Selected WACC 8.2%

CPI.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 CPI.AT:

cost_of_equity (9.30%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.5) + 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.