KEKR.AT WACC - Weighted Average Cost of Capital

The WACC of Kekrops SA (KEKR.AT) is 7.2%.

The Cost of Equity of Kekrops SA (KEKR.AT) is 7.85%.

The Cost of Debt of Kekrops SA (KEKR.AT) is 5.50%.

	Range	Selected
Cost of equity	6.20% - 9.50%	7.85%
Tax rate	12.00% - 31.30%	21.65%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.7% - 8.7%	7.2%

WACC

KEKR.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.33	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	9.50%

Tax rate	12.00%	31.30%
Debt/Equity ratio	0.22	0.22
Cost of debt	4.00%	7.00%

After-tax WACC	5.7%	8.7%


Selected WACC	7.2%

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 (7.85%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.33) + 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.