ENI.WA WACC - Weighted Average Cost of Capital

The WACC of Energoinstal SA (ENI.WA) is 8.6%.

The Cost of Equity of Energoinstal SA (ENI.WA) is 10.10%.

The Cost of Debt of Energoinstal SA (ENI.WA) is 7.45%.

	Range	Selected
Cost of equity	8.20% - 12.00%	10.10%
Tax rate	10.80% - 16.90%	13.85%
Cost of debt	7.00% - 7.90%	7.45%
WACC	7.4% - 9.8%	8.6%

WACC

ENI.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.43	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	12.00%

Tax rate	10.80%	16.90%
Debt/Equity ratio	0.67	0.67
Cost of debt	7.00%	7.90%

After-tax WACC	7.4%	9.8%


Selected WACC	8.6%

ENI.WA'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 ENI.WA:

cost_of_equity (10.10%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.43) + 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.