OLYMP.AT WACC - Weighted Average Cost of Capital

The WACC of Technical Olympic SA (OLYMP.AT) is 7.4%.

The Cost of Equity of Technical Olympic SA (OLYMP.AT) is 7.75%.

The Cost of Debt of Technical Olympic SA (OLYMP.AT) is 5.85%.

	Range	Selected
Cost of equity	6.70% - 8.80%	7.75%
Tax rate	4.70% - 17.70%	11.20%
Cost of debt	4.70% - 7.00%	5.85%
WACC	6.4% - 8.4%	7.4%

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	0.38	0.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	8.80%

Tax rate	4.70%	17.70%
Debt/Equity ratio	0.15	0.15
Cost of debt	4.70%	7.00%

After-tax WACC	6.4%	8.4%


Selected WACC	7.4%

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 (7.75%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.38) + 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.