EUROB.AT
Eurobank Ergasias Services and Holdings SA
Price:  
2.88 
EUR
Volume:  
31,465,876.00
Greece | Banks
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EUROB.AT WACC - Weighted Average Cost of Capital

The WACC of Eurobank Ergasias Services and Holdings SA (EUROB.AT) is 8.7%.

The Cost of Equity of Eurobank Ergasias Services and Holdings SA (EUROB.AT) is 12.35%.
The Cost of Debt of Eurobank Ergasias Services and Holdings SA (EUROB.AT) is 5.00%.

Range Selected
Cost of equity 10.60% - 14.10% 12.35%
Tax rate 21.60% - 26.80% 24.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.8% - 9.7% 8.7%
WACC

EUROB.AT WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 8.8% 9.8%
Adjusted beta 0.83 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.60% 14.10%
Tax rate 21.60% 26.80%
Debt/Equity ratio 0.73 0.73
Cost of debt 5.00% 5.00%
After-tax WACC 7.8% 9.7%
Selected WACC 8.7%

EUROB.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 EUROB.AT:

cost_of_equity (12.35%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.83) + 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.