KYSA.AT WACC - Weighted Average Cost of Capital

The WACC of Flour Mills C Sarantopoulos SA (KYSA.AT) is 11.5%.

The Cost of Equity of Flour Mills C Sarantopoulos SA (KYSA.AT) is 15.00%.

The Cost of Debt of Flour Mills C Sarantopoulos SA (KYSA.AT) is 13.65%.

	Range	Selected
Cost of equity	10.80% - 19.20%	15.00%
Tax rate	5.40% - 26.40%	15.90%
Cost of debt	4.00% - 23.30%	13.65%
WACC	5.5% - 17.6%	11.5%

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	0.86	1.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	19.20%

Tax rate	5.40%	26.40%
Debt/Equity ratio	3.21	3.21
Cost of debt	4.00%	23.30%

After-tax WACC	5.5%	17.6%


Selected WACC	11.5%

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 (15.00%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.86) + 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.