KEKR.AT WACC - Weighted Average Cost of Capital

The WACC of Kekrops SA (KEKR.AT) is 7.5%.

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	6.30% - 9.40%	7.85%
Tax rate	23.00% - 35.40%	29.20%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.0% - 9.0%	7.5%

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	0.34	0.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	9.40%

Tax rate	23.00%	35.40%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.00%	7.00%

After-tax WACC	6.0%	9.0%


Selected WACC	7.5%

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 (0.34) + 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.