KYSA.AT WACC - Weighted Average Cost of Capital

The WACC of Flour Mills C Sarantopoulos SA (KYSA.AT) is 8.4%.

The Cost of Equity of Flour Mills C Sarantopoulos SA (KYSA.AT) is 20.50%.

The Cost of Debt of Flour Mills C Sarantopoulos SA (KYSA.AT) is 5.50%.

	Range	Selected
Cost of equity	11.20% - 29.80%	20.50%
Tax rate	5.40% - 26.40%	15.90%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.6% - 11.1%	8.4%

WACC

KYSA.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.9	2.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	29.80%

Tax rate	5.40%	26.40%
Debt/Equity ratio	3.12	3.12
Cost of debt	4.00%	7.00%

After-tax WACC	5.6%	11.1%


Selected WACC	8.4%

KYSA.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 KYSA.AT:

cost_of_equity (20.50%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.9) + 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.