EUROC.AT WACC - Weighted Average Cost of Capital
The WACC of Euroconsultants SA (EUROC.AT) is 8.8%.
| Range | Selected | |
| Cost of equity | 7.2% - 10.9% | 9.05% |
| Tax rate | 14.6% - 17.4% | 16% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.0% - 10.6% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 8.8% | 9.8% |
| Adjusted beta | 0.44 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 10.9% |
| Tax rate | 14.6% | 17.4% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.0% | 10.6% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EUROC.AT | Euroconsultants SA | 0.04 | 0.65 | 0.62 |
| BCM.WA | Betacom SA | 0.08 | 0.15 | 0.14 |
| C1V.DE | mVISE AG | 0.56 | 1.34 | 0.91 |
| MLB.WA | Makolab SA | 0.01 | 1.11 | 1.1 |
| NC5A.DE | NorCom Information Technology AG | 0.18 | -0.22 | -0.19 |
| RTC.DE | Realtech AG | 0.07 | 1.09 | 1.03 |
| SBE.WA | Softblue SA | 0.01 | 0.17 | 0.17 |
| TLX.WA | Talex SA | 0.07 | 0.09 | 0.09 |
| VERT B.ST | Vertiseit AB (publ) | 0.17 | 0.48 | 0.42 |
| WIRTEK.CO | Wirtek A/S | 0.16 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0.16 | 0.5 |
| Relevered beta | 0.16 | 0.52 |
| Adjusted relevered beta | 0.44 | 0.68 |
EUROC.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 EUROC.AT:
cost_of_equity (9.05%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.44) + 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.