ETE.AT WACC - Weighted Average Cost of Capital

The WACC of National Bank of Greece SA (ETE.AT) is 8.7%.

The Cost of Equity of National Bank of Greece SA (ETE.AT) is 10.80%.

The Cost of Debt of National Bank of Greece SA (ETE.AT) is 5.00%.

	Range	Selected
Cost of equity	8.90% - 12.70%	10.80%
Tax rate	14.90% - 23.00%	18.95%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.4% - 9.9%	8.7%

WACC

ETE.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.64	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	12.70%

Tax rate	14.90%	23.00%
Debt/Equity ratio	0.46	0.46
Cost of debt	5.00%	5.00%

After-tax WACC	7.4%	9.9%


Selected WACC	8.7%

ETE.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 ETE.AT:

cost_of_equity (10.80%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.64) + 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.