HTO.AT WACC - Weighted Average Cost of Capital

The WACC of Hellenic Telecommunications Organization SA (HTO.AT) is 8.3%.

The Cost of Equity of Hellenic Telecommunications Organization SA (HTO.AT) is 9.15%.

The Cost of Debt of Hellenic Telecommunications Organization SA (HTO.AT) is 4.25%.

	Range	Selected
Cost of equity	8.00% - 10.30%	9.15%
Tax rate	27.30% - 29.60%	28.45%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.3% - 9.3%	8.3%

WACC

HTO.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.53	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	10.30%

Tax rate	27.30%	29.60%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.00%	4.50%

After-tax WACC	7.3%	9.3%


Selected WACC	8.3%

HTO.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 HTO.AT:

cost_of_equity (9.15%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.53) + 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.