KTILA.AT WACC - Weighted Average Cost of Capital

The WACC of Ktima Kostas Lazaridis SA (KTILA.AT) is 7.0%.

The Cost of Equity of Ktima Kostas Lazaridis SA (KTILA.AT) is 8.35%.

The Cost of Debt of Ktima Kostas Lazaridis SA (KTILA.AT) is 4.25%.

	Range	Selected
Cost of equity	7.50% - 9.20%	8.35%
Tax rate	21.70% - 23.40%	22.55%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.3% - 7.7%	7.0%

WACC

KTILA.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.47	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	9.20%

Tax rate	21.70%	23.40%
Debt/Equity ratio	0.37	0.37
Cost of debt	4.00%	4.50%

After-tax WACC	6.3%	7.7%


Selected WACC	7.0%

KTILA.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 KTILA.AT:

cost_of_equity (8.35%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.47) + 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.