ELHA.AT WACC - Weighted Average Cost of Capital

The WACC of Elvalhalcor Hellenic Copper and Aluminium Industry SA (ELHA.AT) is 7.6%.

The Cost of Equity of Elvalhalcor Hellenic Copper and Aluminium Industry SA (ELHA.AT) is 9.95%.

The Cost of Debt of Elvalhalcor Hellenic Copper and Aluminium Industry SA (ELHA.AT) is 4.70%.

	Range	Selected
Cost of equity	8.50% - 11.40%	9.95%
Tax rate	17.00% - 20.80%	18.90%
Cost of debt	4.50% - 4.90%	4.70%
WACC	6.6% - 8.5%	7.6%

WACC

ELHA.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.59	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.40%

Tax rate	17.00%	20.80%
Debt/Equity ratio	0.63	0.63
Cost of debt	4.50%	4.90%

After-tax WACC	6.6%	8.5%


Selected WACC	7.6%

ELHA.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 ELHA.AT:

cost_of_equity (9.95%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.59) + 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.