EYDAP.AT WACC - Weighted Average Cost of Capital

The WACC of Athens Water and Sewerage Company SA (EYDAP.AT) is 7.8%.

The Cost of Equity of Athens Water and Sewerage Company SA (EYDAP.AT) is 7.80%.

The Cost of Debt of Athens Water and Sewerage Company SA (EYDAP.AT) is 18.10%.

	Range	Selected
Cost of equity	6.90% - 8.70%	7.80%
Tax rate	23.20% - 24.00%	23.60%
Cost of debt	7.00% - 29.20%	18.10%
WACC	6.9% - 8.8%	7.8%

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	0.41	0.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	8.70%

Tax rate	23.20%	24.00%
Debt/Equity ratio	0	0
Cost of debt	7.00%	29.20%

After-tax WACC	6.9%	8.8%


Selected WACC	7.8%

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 (7.80%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.41) + 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.