ELPE.AT WACC - Weighted Average Cost of Capital

The WACC of Hellenic Petroleum SA (ELPE.AT) is 8.5%.

The Cost of Equity of Hellenic Petroleum SA (ELPE.AT) is 13.05%.

The Cost of Debt of Hellenic Petroleum SA (ELPE.AT) is 6.35%.

	Range	Selected
Cost of equity	11.20% - 14.90%	13.05%
Tax rate	27.30% - 33.90%	30.60%
Cost of debt	4.10% - 8.60%	6.35%
WACC	6.9% - 10.1%	8.5%

WACC

ELPE.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.9	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	14.90%

Tax rate	27.30%	33.90%
Debt/Equity ratio	1.1	1.1
Cost of debt	4.10%	8.60%

After-tax WACC	6.9%	10.1%


Selected WACC	8.5%

ELPE.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 ELPE.AT:

cost_of_equity (13.05%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.9) + 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.