The WACC of Papoutsanis Industrial and Commercial of Consumer Goods SA (PAP.AT) is 7.6%.
Range | Selected | |
Cost of equity | 7.4% - 10.5% | 8.95% |
Tax rate | 19.1% - 21.1% | 20.1% |
Cost of debt | 4.5% - 5.5% | 5% |
WACC | 6.4% - 8.8% | 7.6% |
Category | Low | High |
Long-term bond rate | 3.3% | 3.8% |
Equity market risk premium | 8.8% | 9.8% |
Adjusted beta | 0.46 | 0.64 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.4% | 10.5% |
Tax rate | 19.1% | 21.1% |
Debt/Equity ratio | 0.37 | 0.37 |
Cost of debt | 4.5% | 5.5% |
After-tax WACC | 6.4% | 8.8% |
Selected WACC | 7.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PAP.AT | Papoutsanis Industrial and Commercial of Consumer Goods SA | 0.37 | 0.48 | 0.37 |
BIE.MI | Bioera SpA | 12.98 | -0.02 | 0 |
CRL.L | Creightons PLC | 0.15 | 0.68 | 0.61 |
ENV.MI | Enervit SpA | 0.15 | 0.11 | 0.09 |
HRP.WA | Harper Hygienics SA | 3.66 | 0.3 | 0.08 |
MPH.WA | Master Pharm SA | 0.05 | 0.35 | 0.34 |
NATTO.OL | Nattopharma ASA | 0.02 | 1.22 | 1.2 |
NNH.ST | New Nordic Healthbrands AB | 0.26 | 0.17 | 0.14 |
VLG.L | Venture Life Group PLC | 0.42 | 0.21 | 0.16 |
W7L.L | Warpaint London PLC | 0.02 | 1.25 | 1.23 |
Low | High | |
Unlevered beta | 0.15 | 0.35 |
Relevered beta | 0.19 | 0.46 |
Adjusted relevered beta | 0.46 | 0.64 |
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.