ELHA.AT WACC - Weighted Average Cost of Capital

The WACC of Elvalhalcor Hellenic Copper and Aluminium Industry SA (ELHA.AT) is 7.8%.

The Cost of Equity of Elvalhalcor Hellenic Copper and Aluminium Industry SA (ELHA.AT) is 10.55%.

The Cost of Debt of Elvalhalcor Hellenic Copper and Aluminium Industry SA (ELHA.AT) is 5.00%.

	Range	Selected
Cost of equity	9.10% - 12.00%	10.55%
Tax rate	17.00% - 20.80%	18.90%
Cost of debt	4.90% - 5.10%	5.00%
WACC	6.9% - 8.6%	7.8%

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	0.66	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	12.00%

Tax rate	17.00%	20.80%
Debt/Equity ratio	0.74	0.74
Cost of debt	4.90%	5.10%

After-tax WACC	6.9%	8.6%


Selected WACC	7.8%

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 (10.55%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.66) + 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.