PAP.AT
Papoutsanis Industrial and Commercial of Consumer Goods SA
Price:  
2.7 
EUR
Volume:  
5,695
Greece | Personal Products

PAP.AT WACC - Weighted Average Cost of Capital

The WACC of Papoutsanis Industrial and Commercial of Consumer Goods SA (PAP.AT) is 7.6%.

The Cost of Equity of Papoutsanis Industrial and Commercial of Consumer Goods SA (PAP.AT) is 8.95%.
The Cost of Debt of Papoutsanis Industrial and Commercial of Consumer Goods SA (PAP.AT) is 5%.

RangeSelected
Cost of equity7.4% - 10.5%8.95%
Tax rate19.1% - 21.1%20.1%
Cost of debt4.5% - 5.5%5%
WACC6.4% - 8.8%7.6%
WACC

PAP.AT WACC calculation

CategoryLowHigh
Long-term bond rate3.3%3.8%
Equity market risk premium8.8%9.8%
Adjusted beta0.460.64
Additional risk adjustments0.0%0.5%
Cost of equity7.4%10.5%
Tax rate19.1%21.1%
Debt/Equity ratio
0.370.37
Cost of debt4.5%5.5%
After-tax WACC6.4%8.8%
Selected WACC7.6%

PAP.AT WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.150.35
Relevered beta0.190.46
Adjusted relevered beta0.460.64

PAP.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 PAP.AT:

cost_of_equity (8.95%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.46) + 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.