DOMIK.AT WACC - Weighted Average Cost of Capital

The WACC of Domiki Kritis SA (DOMIK.AT) is 7.0%.

The Cost of Equity of Domiki Kritis SA (DOMIK.AT) is 7.05%.

The Cost of Debt of Domiki Kritis SA (DOMIK.AT) is 9.45%.

	Range	Selected
Cost of equity	6.20% - 7.90%	7.05%
Tax rate	24.20% - 28.70%	26.45%
Cost of debt	7.10% - 11.80%	9.45%
WACC	6.1% - 8.0%	7.0%

WACC

DOMIK.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.33	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	7.90%

Tax rate	24.20%	28.70%
Debt/Equity ratio	0.22	0.22
Cost of debt	7.10%	11.80%

After-tax WACC	6.1%	8.0%


Selected WACC	7.0%

DOMIK.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 DOMIK.AT:

cost_of_equity (7.05%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.33) + 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.