OTOEL.AT WACC - Weighted Average Cost of Capital

The WACC of Autohellas SA (OTOEL.AT) is 9.2%.

The Cost of Equity of Autohellas SA (OTOEL.AT) is 12.75%.

The Cost of Debt of Autohellas SA (OTOEL.AT) is 5.70%.

	Range	Selected
Cost of equity	11.30% - 14.20%	12.75%
Tax rate	19.50% - 20.20%	19.85%
Cost of debt	4.80% - 6.60%	5.70%
WACC	8.1% - 10.3%	9.2%

WACC

OTOEL.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.91	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.20%

Tax rate	19.50%	20.20%
Debt/Equity ratio	0.76	0.76
Cost of debt	4.80%	6.60%

After-tax WACC	8.1%	10.3%


Selected WACC	9.2%

OTOEL.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 OTOEL.AT:

cost_of_equity (12.75%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.91) + 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.