EVN.VI WACC - Weighted Average Cost of Capital
The WACC of EVN AG (EVN.VI) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.7% - 7.7% | 6.7% |
| Tax rate | 9.1% - 11.2% | 10.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 6.9% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.52 | 0.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 7.7% |
| Tax rate | 9.1% | 11.2% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 6.9% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EVN.VI | EVN AG | 0.28 | 0.65 | 0.52 |
| BKW.SW | BKW AG | 0.21 | 0.38 | 0.32 |
| EDHN.SW | Energiedienst Holding AG | 0.08 | 0.24 | 0.23 |
| ELEC.PA | Electricite de Strasbourg SA | 0.02 | 0.24 | 0.23 |
| ELI.BR | Elia Group SA | 1.47 | 0.66 | 0.29 |
| ENA.WA | Enea SA | 0.79 | 0.73 | 0.43 |
| ENG.WA | Energa SA | 2.37 | 0.3 | 0.1 |
| IGN1L.VS | Ignitis Grupe AB | 1.19 | 1.49 | 0.72 |
| IRL.WA | Inter RAO Lietuva AB | 0.01 | 0 | 0 |
| REE.MC | Red Electrica Corporacion SA | 0.74 | 0.3 | 0.18 |
| Low | High | |
| Unlevered beta | 0.23 | 0.3 |
| Relevered beta | 0.28 | 0.37 |
| Adjusted relevered beta | 0.52 | 0.58 |
EVN.VI'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 EVN.VI:
cost_of_equity (6.70%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.52) + 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.