ETE.AT
National Bank of Greece SA
Price:  
10.70 
EUR
Volume:  
4,893,865.00
Greece | Banks
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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.