PAIR.AT WACC - Weighted Average Cost of Capital

The WACC of E Pairis SA (PAIR.AT) is 8.6%.

The Cost of Equity of E Pairis SA (PAIR.AT) is 12.35%.

The Cost of Debt of E Pairis SA (PAIR.AT) is 8.95%.

	Range	Selected
Cost of equity	10.30% - 14.40%	12.35%
Tax rate	15.80% - 23.40%	19.60%
Cost of debt	6.10% - 11.80%	8.95%
WACC	6.6% - 10.5%	8.6%

WACC

PAIR.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.8	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	14.40%

Tax rate	15.80%	23.40%
Debt/Equity ratio	2.59	2.59
Cost of debt	6.10%	11.80%

After-tax WACC	6.6%	10.5%


Selected WACC	8.6%

PAIR.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 PAIR.AT:

cost_of_equity (12.35%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.8) + 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.