FOODL.AT WACC - Weighted Average Cost of Capital

The WACC of Foodlink SA (FOODL.AT) is 8.0%.

The Cost of Equity of Foodlink SA (FOODL.AT) is 7.70%.

The Cost of Debt of Foodlink SA (FOODL.AT) is 9.55%.

	Range	Selected
Cost of equity	6.60% - 8.80%	7.70%
Tax rate	6.90% - 16.60%	11.75%
Cost of debt	4.00% - 15.10%	9.55%
WACC	4.7% - 11.4%	8.0%

WACC

FOODL.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.37	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	8.80%

Tax rate	6.90%	16.60%
Debt/Equity ratio	2.09	2.09
Cost of debt	4.00%	15.10%

After-tax WACC	4.7%	11.4%


Selected WACC	8.0%

FOODL.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 FOODL.AT:

cost_of_equity (7.70%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.37) + 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.