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.