PAP.AT WACC - Weighted Average Cost of Capital

The WACC of Papoutsanis Industrial and Commercial of Consumer Goods SA (PAP.AT) is 7.7%.

The Cost of Equity of Papoutsanis Industrial and Commercial of Consumer Goods SA (PAP.AT) is 9.10%.

The Cost of Debt of Papoutsanis Industrial and Commercial of Consumer Goods SA (PAP.AT) is 5.00%.

	Range	Selected
Cost of equity	7.60% - 10.60%	9.10%
Tax rate	19.10% - 21.10%	20.10%
Cost of debt	4.50% - 5.50%	5.00%
WACC	6.6% - 8.9%	7.7%

WACC

PAP.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.49	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	10.60%

Tax rate	19.10%	21.10%
Debt/Equity ratio	0.36	0.36
Cost of debt	4.50%	5.50%

After-tax WACC	6.6%	8.9%


Selected WACC	7.7%

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 (9.10%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.49) + 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.