EVROF.AT WACC - Weighted Average Cost of Capital

The WACC of Evrofarma SA (EVROF.AT) is 7.3%.

The Cost of Equity of Evrofarma SA (EVROF.AT) is 9.50%.

The Cost of Debt of Evrofarma SA (EVROF.AT) is 5.35%.

	Range	Selected
Cost of equity	7.60% - 11.40%	9.50%
Tax rate	15.10% - 19.60%	17.35%
Cost of debt	5.20% - 5.50%	5.35%
WACC	6.3% - 8.4%	7.3%

WACC

EVROF.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.49	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	11.40%

Tax rate	15.10%	19.60%
Debt/Equity ratio	0.76	0.76
Cost of debt	5.20%	5.50%

After-tax WACC	6.3%	8.4%


Selected WACC	7.3%

EVROF.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 EVROF.AT:

cost_of_equity (9.50%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.49) + 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.