KEPEN.AT WACC - Weighted Average Cost of Capital

The WACC of Flour Mills Kepenos SA (KEPEN.AT) is 5.2%.

The Cost of Equity of Flour Mills Kepenos SA (KEPEN.AT) is 7.00%.

The Cost of Debt of Flour Mills Kepenos SA (KEPEN.AT) is 6.30%.

	Range	Selected
Cost of equity	6.10% - 7.90%	7.00%
Tax rate	26.10% - 33.40%	29.75%
Cost of debt	4.00% - 8.60%	6.30%
WACC	3.9% - 6.4%	5.2%

WACC

KEPEN.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.32	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	7.90%

Tax rate	26.10%	33.40%
Debt/Equity ratio	2.18	2.18
Cost of debt	4.00%	8.60%

After-tax WACC	3.9%	6.4%


Selected WACC	5.2%

KEPEN.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 KEPEN.AT:

cost_of_equity (7.00%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.32) + 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.