MEVA.AT
Mevaco SA
Price:  
4.56 
EUR
Volume:  
1,190.00
Greece | Machinery
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MEVA.AT WACC - Weighted Average Cost of Capital

The WACC of Mevaco SA (MEVA.AT) is 9.3%.

The Cost of Equity of Mevaco SA (MEVA.AT) is 9.60%.
The Cost of Debt of Mevaco SA (MEVA.AT) is 7.00%.

Range Selected
Cost of equity 8.20% - 11.00% 9.60%
Tax rate 21.40% - 22.10% 21.75%
Cost of debt 7.00% - 7.00% 7.00%
WACC 8.0% - 10.6% 9.3%
WACC

MEVA.AT WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 8.8% 9.8%
Adjusted beta 0.56 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 11.00%
Tax rate 21.40% 22.10%
Debt/Equity ratio 0.09 0.09
Cost of debt 7.00% 7.00%
After-tax WACC 8.0% 10.6%
Selected WACC 9.3%

MEVA.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 MEVA.AT:

cost_of_equity (9.60%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.56) + 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.