KEKR.AT
Kekrops SA
Price:  
1.58 
EUR
Volume:  
23,375
Greece | Real Estate Management & Development

KEKR.AT WACC - Weighted Average Cost of Capital

The WACC of Kekrops SA (KEKR.AT) is 7.4%.

The Cost of Equity of Kekrops SA (KEKR.AT) is 7.7%.
The Cost of Debt of Kekrops SA (KEKR.AT) is 5.5%.

RangeSelected
Cost of equity6.3% - 9.1%7.7%
Tax rate23.0% - 35.4%29.2%
Cost of debt4.0% - 7.0%5.5%
WACC6.0% - 8.7%7.4%
WACC

KEKR.AT WACC calculation

CategoryLowHigh
Long-term bond rate3.3%3.8%
Equity market risk premium8.8%9.8%
Adjusted beta0.340.48
Additional risk adjustments0.0%0.5%
Cost of equity6.3%9.1%
Tax rate23.0%35.4%
Debt/Equity ratio
0.080.08
Cost of debt4.0%7.0%
After-tax WACC6.0%8.7%
Selected WACC7.4%

KEKR.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 KEKR.AT:

cost_of_equity (7.70%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.34) + 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.