GEKTERNA.AT WACC - Weighted Average Cost of Capital

The WACC of GEK TERNA Holdings Real Estate Construction SA (GEKTERNA.AT) is 7.3%.

The Cost of Equity of GEK TERNA Holdings Real Estate Construction SA (GEKTERNA.AT) is 12.60%.

The Cost of Debt of GEK TERNA Holdings Real Estate Construction SA (GEKTERNA.AT) is 5.55%.

	Range	Selected
Cost of equity	10.00% - 15.20%	12.60%
Tax rate	26.10% - 27.60%	26.85%
Cost of debt	4.20% - 6.90%	5.55%
WACC	5.7% - 8.9%	7.3%

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	0.76	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	15.20%

Tax rate	26.10%	27.60%
Debt/Equity ratio	1.64	1.64
Cost of debt	4.20%	6.90%

After-tax WACC	5.7%	8.9%


Selected WACC	7.3%

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 (12.60%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.76) + 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.