EPSIL.AT WACC - Weighted Average Cost of Capital

The WACC of Epsilon Net SA (EPSIL.AT) is 9.0%.

The Cost of Equity of Epsilon Net SA (EPSIL.AT) is 9.20%.

The Cost of Debt of Epsilon Net SA (EPSIL.AT) is 4.55%.

	Range	Selected
Cost of equity	7.60% - 10.80%	9.20%
Tax rate	8.20% - 15.00%	11.60%
Cost of debt	4.00% - 5.10%	4.55%
WACC	7.5% - 10.6%	9.0%

WACC

EPSIL.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.49	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	10.80%

Tax rate	8.20%	15.00%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	5.10%

After-tax WACC	7.5%	10.6%


Selected WACC	9.0%

EPSIL.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 EPSIL.AT:

cost_of_equity (9.20%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.49) + 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.