ELIN.AT WACC - Weighted Average Cost of Capital

The WACC of Elinoil Hellenic Petroleum Company SA (ELIN.AT) is 7.6%.

The Cost of Equity of Elinoil Hellenic Petroleum Company SA (ELIN.AT) is 8.85%.

The Cost of Debt of Elinoil Hellenic Petroleum Company SA (ELIN.AT) is 9.25%.

	Range	Selected
Cost of equity	7.30% - 10.40%	8.85%
Tax rate	22.20% - 24.20%	23.20%
Cost of debt	8.60% - 9.90%	9.25%
WACC	6.9% - 8.4%	7.6%

WACC

ELIN.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.46	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	10.40%

Tax rate	22.20%	24.20%
Debt/Equity ratio	2.38	2.38
Cost of debt	8.60%	9.90%

After-tax WACC	6.9%	8.4%


Selected WACC	7.6%

ELIN.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 ELIN.AT:

cost_of_equity (8.85%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.46) + 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.