NEWS.AT WACC - Weighted Average Cost of Capital

The WACC of Newsphone Hellas SA (NEWS.AT) is 9.3%.

The Cost of Equity of Newsphone Hellas SA (NEWS.AT) is 9.80%.

The Cost of Debt of Newsphone Hellas SA (NEWS.AT) is 8.95%.

	Range	Selected
Cost of equity	8.30% - 11.30%	9.80%
Tax rate	26.40% - 28.40%	27.40%
Cost of debt	7.00% - 10.90%	8.95%
WACC	7.8% - 10.7%	9.3%

WACC

NEWS.AT WACC calculation

Category	Low	High

Long-term bond rate	4.4%	4.9%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.47	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	11.30%

Tax rate	26.40%	28.40%
Debt/Equity ratio	0.17	0.17
Cost of debt	7.00%	10.90%

After-tax WACC	7.8%	10.7%


Selected WACC	9.3%

NEWS.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 NEWS.AT:

cost_of_equity (9.80%) = risk_free_rate (4.65%) + equity_risk_premium (8.80%) * adjusted_beta (0.47) + 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.