EPIL.AT
Selected Textile Industries Association SA
Price:  
0.13 
EUR
Volume:  
37,850.00
Greece | Textiles, Apparel & Luxury Goods
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EPIL.AT WACC - Weighted Average Cost of Capital

The WACC of Selected Textile Industries Association SA (EPIL.AT) is 7.5%.

The Cost of Equity of Selected Textile Industries Association SA (EPIL.AT) is 13.15%.
The Cost of Debt of Selected Textile Industries Association SA (EPIL.AT) is 7.90%.

Range Selected
Cost of equity 7.50% - 18.80% 13.15%
Tax rate 5.90% - 15.80% 10.85%
Cost of debt 4.00% - 11.80% 7.90%
WACC 4.1% - 10.8% 7.5%
WACC

EPIL.AT WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 8.8% 9.8%
Adjusted beta 0.48 1.48
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 18.80%
Tax rate 5.90% 15.80%
Debt/Equity ratio 9.11 9.11
Cost of debt 4.00% 11.80%
After-tax WACC 4.1% 10.8%
Selected WACC 7.5%

EPIL.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 EPIL.AT:

cost_of_equity (13.15%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.48) + 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.