KLM.AT WACC - Weighted Average Cost of Capital

The WACC of I Kloukinas I Lappas Construction and Commercial Co SA (KLM.AT) is 8.0%.

The Cost of Equity of I Kloukinas I Lappas Construction and Commercial Co SA (KLM.AT) is 7.40%.

The Cost of Debt of I Kloukinas I Lappas Construction and Commercial Co SA (KLM.AT) is 13.95%.

	Range	Selected
Cost of equity	5.90% - 8.90%	7.40%
Tax rate	21.70% - 22.90%	22.30%
Cost of debt	4.60% - 23.30%	13.95%
WACC	5.5% - 10.5%	8.0%

WACC

KLM.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.3	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	8.90%

Tax rate	21.70%	22.90%
Debt/Equity ratio	0.22	0.22
Cost of debt	4.60%	23.30%

After-tax WACC	5.5%	10.5%


Selected WACC	8.0%

KLM.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 KLM.AT:

cost_of_equity (7.40%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.3) + 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.