ELGEK.AT WACC - Weighted Average Cost of Capital

The WACC of Elgeka SA Trade Distributions Representations Industry (ELGEK.AT) is 8.8%.

The Cost of Equity of Elgeka SA Trade Distributions Representations Industry (ELGEK.AT) is 8.85%.

The Cost of Debt of Elgeka SA Trade Distributions Representations Industry (ELGEK.AT) is 11.00%.

	Range	Selected
Cost of equity	7.50% - 10.20%	8.85%
Tax rate	18.00% - 21.80%	19.90%
Cost of debt	6.90% - 15.10%	11.00%
WACC	6.2% - 11.3%	8.8%

WACC

ELGEK.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.48	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.20%

Tax rate	18.00%	21.80%
Debt/Equity ratio	2.31	2.31
Cost of debt	6.90%	15.10%

After-tax WACC	6.2%	11.3%


Selected WACC	8.8%

ELGEK.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 ELGEK.AT:

cost_of_equity (8.85%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.48) + 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.