GEKTERNA.AT WACC - Weighted Average Cost of Capital

The WACC of GEK TERNA Holdings Real Estate Construction SA (GEKTERNA.AT) is 9.3%.

The Cost of Equity of GEK TERNA Holdings Real Estate Construction SA (GEKTERNA.AT) is 14.75%.

The Cost of Debt of GEK TERNA Holdings Real Estate Construction SA (GEKTERNA.AT) is 9.80%.

	Range	Selected
Cost of equity	12.30% - 17.20%	14.75%
Tax rate	26.10% - 29.60%	27.85%
Cost of debt	4.50% - 15.10%	9.80%
WACC	6.0% - 12.6%	9.3%

WACC

GEKTERNA.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	1.02	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	17.20%

Tax rate	26.10%	29.60%
Debt/Equity ratio	2.35	2.35
Cost of debt	4.50%	15.10%

After-tax WACC	6.0%	12.6%


Selected WACC	9.3%

GEKTERNA.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 GEKTERNA.AT:

cost_of_equity (14.75%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (1.02) + 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.