LAMPS.AT WACC - Weighted Average Cost of Capital

The WACC of Lampsa Hellenic Hotels SA (LAMPS.AT) is 7.2%.

The Cost of Equity of Lampsa Hellenic Hotels SA (LAMPS.AT) is 7.80%.

The Cost of Debt of Lampsa Hellenic Hotels SA (LAMPS.AT) is 4.40%.

	Range	Selected
Cost of equity	6.70% - 8.90%	7.80%
Tax rate	27.40% - 30.90%	29.15%
Cost of debt	4.00% - 4.80%	4.40%
WACC	6.2% - 8.1%	7.2%

WACC

LAMPS.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.39	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	8.90%

Tax rate	27.40%	30.90%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.00%	4.80%

After-tax WACC	6.2%	8.1%


Selected WACC	7.2%

LAMPS.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 LAMPS.AT:

cost_of_equity (7.80%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.39) + 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.