MYTIL.AT WACC - Weighted Average Cost of Capital

The WACC of Mytilineos SA (MYTIL.AT) is 8.8%.

The Cost of Equity of Mytilineos SA (MYTIL.AT) is 12.60%.

The Cost of Debt of Mytilineos SA (MYTIL.AT) is 4.25%.

	Range	Selected
Cost of equity	10.40% - 14.80%	12.60%
Tax rate	17.60% - 19.20%	18.40%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.4% - 10.1%	8.8%

WACC

MYTIL.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.81	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	14.80%

Tax rate	17.60%	19.20%
Debt/Equity ratio	0.72	0.72
Cost of debt	4.00%	4.50%

After-tax WACC	7.4%	10.1%


Selected WACC	8.8%

MYTIL.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 MYTIL.AT:

cost_of_equity (12.60%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.81) + 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.