ELBE.AT WACC - Weighted Average Cost of Capital

The WACC of Elve SA (ELBE.AT) is 10.7%.

The Cost of Equity of Elve SA (ELBE.AT) is 10.60%.

The Cost of Debt of Elve SA (ELBE.AT) is 26.05%.

	Range	Selected
Cost of equity	8.90% - 12.30%	10.60%
Tax rate	23.20% - 25.00%	24.10%
Cost of debt	4.00% - 48.10%	26.05%
WACC	8.8% - 12.6%	10.7%

WACC

ELBE.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.64	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	12.30%

Tax rate	23.20%	25.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	48.10%

After-tax WACC	8.8%	12.6%


Selected WACC	10.7%

ELBE.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 ELBE.AT:

cost_of_equity (10.60%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.64) + 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.