ELIN.AT
Elinoil Hellenic Petroleum Company SA
Price:  
2.38 
EUR
Volume:  
4,930.00
Greece | Oil, Gas & Consumable Fuels
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ELIN.AT WACC - Weighted Average Cost of Capital

The WACC of Elinoil Hellenic Petroleum Company SA (ELIN.AT) is 8.4%.

The Cost of Equity of Elinoil Hellenic Petroleum Company SA (ELIN.AT) is 11.45%.
The Cost of Debt of Elinoil Hellenic Petroleum Company SA (ELIN.AT) is 9.45%.

Range Selected
Cost of equity 9.50% - 13.40% 11.45%
Tax rate 22.20% - 24.20% 23.20%
Cost of debt 8.60% - 10.30% 9.45%
WACC 7.4% - 9.4% 8.4%
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 0.7 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.50% 13.40%
Tax rate 22.20% 24.20%
Debt/Equity ratio 2.56 2.56
Cost of debt 8.60% 10.30%
After-tax WACC 7.4% 9.4%
Selected WACC 8.4%

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 (11.45%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.7) + 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.