ELSTR.AT WACC - Weighted Average Cost of Capital

The WACC of Elastron SA (ELSTR.AT) is 12.0%.

The Cost of Equity of Elastron SA (ELSTR.AT) is 12.20%.

The Cost of Debt of Elastron SA (ELSTR.AT) is 15.00%.

	Range	Selected
Cost of equity	10.20% - 14.20%	12.20%
Tax rate	18.10% - 22.50%	20.30%
Cost of debt	6.70% - 23.30%	15.00%
WACC	7.4% - 16.6%	12.0%

WACC

ELSTR.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.79	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	14.20%

Tax rate	18.10%	22.50%
Debt/Equity ratio	1.56	1.56
Cost of debt	6.70%	23.30%

After-tax WACC	7.4%	16.6%


Selected WACC	12.0%

ELSTR.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 ELSTR.AT:

cost_of_equity (12.20%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.79) + 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.