DOMIK.AT WACC - Weighted Average Cost of Capital

The WACC of Domiki Kritis SA (DOMIK.AT) is 6.8%.

The Cost of Equity of Domiki Kritis SA (DOMIK.AT) is 6.80%.

The Cost of Debt of Domiki Kritis SA (DOMIK.AT) is 9.80%.

	Range	Selected
Cost of equity	6.10% - 7.50%	6.80%
Tax rate	29.80% - 33.30%	31.55%
Cost of debt	7.80% - 11.80%	9.80%
WACC	6.0% - 7.6%	6.8%

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	0.32	0.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	7.50%

Tax rate	29.80%	33.30%
Debt/Equity ratio	0.25	0.25
Cost of debt	7.80%	11.80%

After-tax WACC	6.0%	7.6%


Selected WACC	6.8%

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 (6.80%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.32) + 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.