OLYMP.AT WACC - Weighted Average Cost of Capital

The WACC of Technical Olympic SA (OLYMP.AT) is 8.8%.

The Cost of Equity of Technical Olympic SA (OLYMP.AT) is 8.15%.

The Cost of Debt of Technical Olympic SA (OLYMP.AT) is 16.05%.

	Range	Selected
Cost of equity	6.50% - 9.80%	8.15%
Tax rate	5.40% - 18.10%	11.75%
Cost of debt	6.50% - 25.60%	16.05%
WACC	6.4% - 11.2%	8.8%

WACC

OLYMP.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.36	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	9.80%

Tax rate	5.40%	18.10%
Debt/Equity ratio	0.14	0.14
Cost of debt	6.50%	25.60%

After-tax WACC	6.4%	11.2%


Selected WACC	8.8%

OLYMP.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 OLYMP.AT:

cost_of_equity (8.15%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.36) + 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.