FLEXO.AT WACC - Weighted Average Cost of Capital

The WACC of Flexopack SA (FLEXO.AT) is 9.5%.

The Cost of Equity of Flexopack SA (FLEXO.AT) is 13.20%.

The Cost of Debt of Flexopack SA (FLEXO.AT) is 4.25%.

	Range	Selected
Cost of equity	11.60% - 14.80%	13.20%
Tax rate	22.50% - 23.80%	23.15%
Cost of debt	4.00% - 4.50%	4.25%
WACC	8.4% - 10.6%	9.5%

WACC

FLEXO.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.94	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	14.80%

Tax rate	22.50%	23.80%
Debt/Equity ratio	0.59	0.59
Cost of debt	4.00%	4.50%

After-tax WACC	8.4%	10.6%


Selected WACC	9.5%

FLEXO.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 FLEXO.AT:

cost_of_equity (13.20%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.94) + 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.