NAKAS.AT WACC - Weighted Average Cost of Capital

The WACC of Philippos Nakas SA (NAKAS.AT) is 6.9%.

The Cost of Equity of Philippos Nakas SA (NAKAS.AT) is 7.60%.

The Cost of Debt of Philippos Nakas SA (NAKAS.AT) is 5.55%.

	Range	Selected
Cost of equity	6.30% - 8.90%	7.60%
Tax rate	24.10% - 26.60%	25.35%
Cost of debt	4.50% - 6.60%	5.55%
WACC	5.7% - 8.1%	6.9%

WACC

NAKAS.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.34	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.90%

Tax rate	24.10%	26.60%
Debt/Equity ratio	0.25	0.25
Cost of debt	4.50%	6.60%

After-tax WACC	5.7%	8.1%


Selected WACC	6.9%

NAKAS.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 NAKAS.AT:

cost_of_equity (7.60%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.34) + 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.