MOH.AT WACC - Weighted Average Cost of Capital

The WACC of Motor Oil Hellas Corinth Refineries SA (MOH.AT) is 9.6%.

The Cost of Equity of Motor Oil Hellas Corinth Refineries SA (MOH.AT) is 16.25%.

The Cost of Debt of Motor Oil Hellas Corinth Refineries SA (MOH.AT) is 5.30%.

	Range	Selected
Cost of equity	13.60% - 18.90%	16.25%
Tax rate	22.00% - 28.60%	25.30%
Cost of debt	4.50% - 6.10%	5.30%
WACC	8.2% - 11.1%	9.6%

WACC

MOH.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	1.17	1.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.60%	18.90%

Tax rate	22.00%	28.60%
Debt/Equity ratio	1.17	1.17
Cost of debt	4.50%	6.10%

After-tax WACC	8.2%	11.1%


Selected WACC	9.6%

MOH.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 MOH.AT:

cost_of_equity (16.25%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (1.17) + 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.