GAGS.VI
Gurktaler AG
Price:  
20 
EUR
Volume:  
500
Austria | Beverages

GAGS.VI WACC - Weighted Average Cost of Capital

The WACC of Gurktaler AG (GAGS.VI) is 12.4%.

The Cost of Equity of Gurktaler AG (GAGS.VI) is 6.05%.
The Cost of Debt of Gurktaler AG (GAGS.VI) is 24.1%.

RangeSelected
Cost of equity5.1% - 7.0%6.05%
Tax rate19.3% - 22.9%21.1%
Cost of debt7.0% - 41.2%24.1%
WACC5.4% - 19.4%12.4%
WACC

GAGS.VI WACC calculation

CategoryLowHigh
Long-term bond rate2.8%3.3%
Equity market risk premium5.7%6.7%
Adjusted beta0.420.49
Additional risk adjustments0.0%0.5%
Cost of equity5.1%7.0%
Tax rate19.3%22.9%
Debt/Equity ratio
11
Cost of debt7.0%41.2%
After-tax WACC5.4%19.4%
Selected WACC12.4%

GAGS.VI'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 GAGS.VI:

cost_of_equity (6.05%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.42) + 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.