EX.AT WACC - Weighted Average Cost of Capital

The WACC of Euroxx Securities SA (EX.AT) is 7.1%.

The Cost of Equity of Euroxx Securities SA (EX.AT) is 7.45%.

The Cost of Debt of Euroxx Securities SA (EX.AT) is 5.50%.

	Range	Selected
Cost of equity	6.10% - 8.80%	7.45%
Tax rate	27.40% - 44.60%	36.00%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.8% - 8.4%	7.1%

WACC

EX.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.32	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	8.80%

Tax rate	27.40%	44.60%
Debt/Equity ratio	0.1	0.1
Cost of debt	4.00%	7.00%

After-tax WACC	5.8%	8.4%


Selected WACC	7.1%

EX.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 EX.AT:

cost_of_equity (7.45%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.32) + 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.