GEBKA.AT WACC - Weighted Average Cost of Capital

The WACC of General Commercial and Industrial SA (GEBKA.AT) is 5.5%.

The Cost of Equity of General Commercial and Industrial SA (GEBKA.AT) is 7.75%.

The Cost of Debt of General Commercial and Industrial SA (GEBKA.AT) is 4.45%.

	Range	Selected
Cost of equity	6.60% - 8.90%	7.75%
Tax rate	25.60% - 26.30%	25.95%
Cost of debt	4.00% - 4.90%	4.45%
WACC	4.8% - 6.2%	5.5%

WACC

GEBKA.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.38	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	8.90%

Tax rate	25.60%	26.30%
Debt/Equity ratio	1	1
Cost of debt	4.00%	4.90%

After-tax WACC	4.8%	6.2%


Selected WACC	5.5%

GEBKA.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 GEBKA.AT:

cost_of_equity (7.75%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.38) + 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.