KREKA.AT WACC - Weighted Average Cost of Capital

The WACC of Kreka SA (KREKA.AT) is 8.2%.

The Cost of Equity of Kreka SA (KREKA.AT) is 56.95%.

The Cost of Debt of Kreka SA (KREKA.AT) is 5.50%.

	Range	Selected
Cost of equity	29.50% - 84.40%	56.95%
Tax rate	7.20% - 9.10%	8.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.3% - 11.1%	8.2%

WACC

KREKA.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	2.98	8.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	29.50%	84.40%

Tax rate	7.20%	9.10%
Debt/Equity ratio	15.33	15.33
Cost of debt	4.00%	7.00%

After-tax WACC	5.3%	11.1%


Selected WACC	8.2%

KREKA.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 KREKA.AT:

cost_of_equity (56.95%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (2.98) + 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.