ELHA.AT WACC - Weighted Average Cost of Capital

The WACC of Elvalhalcor Hellenic Copper and Aluminium Industry SA (ELHA.AT) is 6.8%.

The Cost of Equity of Elvalhalcor Hellenic Copper and Aluminium Industry SA (ELHA.AT) is 9.45%.

The Cost of Debt of Elvalhalcor Hellenic Copper and Aluminium Industry SA (ELHA.AT) is 5.70%.

	Range	Selected
Cost of equity	7.90% - 11.00%	9.45%
Tax rate	21.70% - 23.80%	22.75%
Cost of debt	4.50% - 6.90%	5.70%
WACC	5.6% - 8.0%	6.8%

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	0.52	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	11.00%

Tax rate	21.70%	23.80%
Debt/Equity ratio	1.13	1.13
Cost of debt	4.50%	6.90%

After-tax WACC	5.6%	8.0%


Selected WACC	6.8%

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 (9.45%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.52) + 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.