The WACC of Loulis Mills SA (KYLO.AT) is 5.4%.
Range | Selected | |
Cost of equity | 6.30% - 9.10% | 7.70% |
Tax rate | 24.50% - 32.60% | 28.55% |
Cost of debt | 4.30% - 4.80% | 4.55% |
WACC | 4.7% - 6.1% | 5.4% |
Category | Low | High |
Long-term bond rate | 3.3% | 3.8% |
Equity market risk premium | 8.8% | 9.8% |
Adjusted beta | 0.35 | 0.49 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.30% | 9.10% |
Tax rate | 24.50% | 32.60% |
Debt/Equity ratio | 1.06 | 1.06 |
Cost of debt | 4.30% | 4.80% |
After-tax WACC | 4.7% | 6.1% |
Selected WACC | 5.4% | |
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 KYLO.AT:
cost_of_equity (7.70%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.35) + 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.