KRI.AT WACC - Weighted Average Cost of Capital

The WACC of Kri Kri Milk Industry SA (KRI.AT) is 10.7%.

The Cost of Equity of Kri Kri Milk Industry SA (KRI.AT) is 10.80%.

The Cost of Debt of Kri Kri Milk Industry SA (KRI.AT) is 4.25%.

	Range	Selected
Cost of equity	8.40% - 13.20%	10.80%
Tax rate	15.90% - 18.30%	17.10%
Cost of debt	4.00% - 4.50%	4.25%
WACC	8.3% - 13.1%	10.7%

WACC

KRI.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.58	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	13.20%

Tax rate	15.90%	18.30%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	4.50%

After-tax WACC	8.3%	13.1%


Selected WACC	10.7%

KRI.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 KRI.AT:

cost_of_equity (10.80%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.58) + 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.