EYDAP.AT WACC - Weighted Average Cost of Capital

The WACC of Athens Water and Sewerage Company SA (EYDAP.AT) is 8.7%.

The Cost of Equity of Athens Water and Sewerage Company SA (EYDAP.AT) is 8.65%.

The Cost of Debt of Athens Water and Sewerage Company SA (EYDAP.AT) is 15.70%.

	Range	Selected
Cost of equity	7.70% - 9.60%	8.65%
Tax rate	36.00% - 44.30%	40.15%
Cost of debt	4.00% - 27.40%	15.70%
WACC	7.7% - 9.6%	8.7%

WACC

EYDAP.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.5	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	9.60%

Tax rate	36.00%	44.30%
Debt/Equity ratio	0	0
Cost of debt	4.00%	27.40%

After-tax WACC	7.7%	9.6%


Selected WACC	8.7%

EYDAP.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 EYDAP.AT:

cost_of_equity (8.65%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.5) + 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.