NIKAS.AT WACC - Weighted Average Cost of Capital

The WACC of PG Nikas SA (NIKAS.AT) is 8.8%.

The Cost of Equity of PG Nikas SA (NIKAS.AT) is 8.85%.

The Cost of Debt of PG Nikas SA (NIKAS.AT) is 12.20%.

	Range	Selected
Cost of equity	7.70% - 10.00%	8.85%
Tax rate	26.40% - 28.40%	27.40%
Cost of debt	6.90% - 17.50%	12.20%
WACC	6.7% - 10.9%	8.8%

WACC

NIKAS.AT WACC calculation

Category	Low	High

Long-term bond rate	4.4%	4.9%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.4	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	10.00%

Tax rate	26.40%	28.40%
Debt/Equity ratio	0.58	0.58
Cost of debt	6.90%	17.50%

After-tax WACC	6.7%	10.9%


Selected WACC	8.8%

NIKAS.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 NIKAS.AT:

cost_of_equity (8.85%) = risk_free_rate (4.65%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.