LOGISMOS.AT WACC - Weighted Average Cost of Capital

The WACC of Logismos Information Systems SA (LOGISMOS.AT) is 7.6%.

The Cost of Equity of Logismos Information Systems SA (LOGISMOS.AT) is 7.75%.

The Cost of Debt of Logismos Information Systems SA (LOGISMOS.AT) is 5.65%.

	Range	Selected
Cost of equity	6.80% - 8.70%	7.75%
Tax rate	25.30% - 36.60%	30.95%
Cost of debt	4.00% - 7.30%	5.65%
WACC	6.7% - 8.5%	7.6%

WACC

LOGISMOS.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.4	0.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	8.70%

Tax rate	25.30%	36.60%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	7.30%

After-tax WACC	6.7%	8.5%


Selected WACC	7.6%

LOGISMOS.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 LOGISMOS.AT:

cost_of_equity (7.75%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.4) + 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.