EPIL.AT WACC - Weighted Average Cost of Capital
The WACC of Selected Textile Industries Association SA (EPIL.AT) is 7.5%.
| Range | Selected | |
| Cost of equity | 8.1% - 18.8% | 13.45% |
| Tax rate | 5.9% - 15.8% | 10.85% |
| Cost of debt | 4.0% - 11.8% | 7.9% |
| WACC | 4.2% - 10.8% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 8.8% | 9.8% |
| Adjusted beta | 0.54 | 1.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 18.8% |
| Tax rate | 5.9% | 15.8% |
| Debt/Equity ratio | 9.11 | 9.11 |
| Cost of debt | 4.0% | 11.8% |
| After-tax WACC | 4.2% | 10.8% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EPIL.AT | Selected Textile Industries Association SA | 9.11 | 1.03 | 0.11 |
| CLF.MI | Caleffi SpA | 1.28 | 0.08 | 0.04 |
| FIER.AT | Fieratex SA | 1.72 | 1.06 | 0.4 |
| HATEK.IS | Hateks Hatay Tekstil Isletmeleri AS | 0.2 | 0.87 | 0.73 |
| LNS1L.VS | Linas AB | 0.32 | 0.02 | 0.01 |
| PTD.L | Pittards PLC | 13.89 | -0.54 | -0.04 |
| ROYAL.IS | Royal Hali Iplik Tekstil Mobilya Sanayi ve Ticaret AS | 1.67 | 0.74 | 0.29 |
| SKTAS.IS | Soktas Tekstil Sanayi ve Ticaret AS | 0.84 | 0.87 | 0.49 |
| VARNH.AT | Varvaressos European Spinning Mills SA | 8.43 | 0.26 | 0.03 |
| ZUC.MI | Vincenzo Zucchi SpA | 2.26 | -0.13 | -0.04 |
| Low | High | |
| Unlevered beta | 0.03 | 0.18 |
| Relevered beta | 0.31 | 1.72 |
| Adjusted relevered beta | 0.54 | 1.48 |
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 (13.45%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.54) + 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.