The WACC of Athens Water and Sewerage Company SA (EYDAP.AT) is 8.7%.
Range | Selected | |
Cost of equity | 7.7% - 9.6% | 8.65% |
Tax rate | 36.0% - 44.3% | 40.15% |
Cost of debt | 4.0% - 27.4% | 15.7% |
WACC | 7.6% - 9.7% | 8.7% |
Category | Low | High |
Long-term bond rate | 3.3% | 3.8% |
Equity market risk premium | 8.8% | 9.8% |
Adjusted beta | 0.5 | 0.55 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.7% | 9.6% |
Tax rate | 36.0% | 44.3% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 4.0% | 27.4% |
After-tax WACC | 7.6% | 9.7% |
Selected WACC | 8.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
EYDAP.AT | Athens Water and Sewerage Company SA | 0 | 0.49 | 0.49 |
MSEX | Middlesex Water Co | 0.39 | -0.29 | -0.24 |
SJW | SJW Group | 0.98 | 0.13 | 0.08 |
AQU.WA | Aqua SA Bielsko-Biala | 0.06 | 0.32 | 0.31 |
EYAPS.AT | Thessaloniki Water and Sewage Co SA | 0 | 0.52 | 0.52 |
PNN.L | Pennon Group PLC | 1.95 | 0.72 | 0.33 |
SVT.L | Severn Trent PLC | 1.2 | 0.36 | 0.21 |
TVEAT.TL | Tallinna Vesi AS | 0.32 | 0.46 | 0.39 |
UU.L | United Utilities Group PLC | 1.41 | 0.3 | 0.16 |
WOD.WA | Wodkan Przedsiebiorstwo Wodociagow i Kanalizacji SA | 0.37 | 0.33 | 0.27 |
Low | High | |
Unlevered beta | 0.25 | 0.32 |
Relevered beta | 0.25 | 0.33 |
Adjusted relevered beta | 0.5 | 0.55 |
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.