ELIN.AT WACC - Weighted Average Cost of Capital

The WACC of Elinoil Hellenic Petroleum Company SA (ELIN.AT) is 7.9%.

The Cost of Equity of Elinoil Hellenic Petroleum Company SA (ELIN.AT) is 8.80%.

The Cost of Debt of Elinoil Hellenic Petroleum Company SA (ELIN.AT) is 9.65%.

	Range	Selected
Cost of equity	7.80% - 9.80%	8.80%
Tax rate	23.00% - 24.70%	23.85%
Cost of debt	7.50% - 11.80%	9.65%
WACC	6.5% - 9.2%	7.9%

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	0.51	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	9.80%

Tax rate	23.00%	24.70%
Debt/Equity ratio	1.87	1.87
Cost of debt	7.50%	11.80%

After-tax WACC	6.5%	9.2%


Selected WACC	7.9%

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 (8.80%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.51) + 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.