PERF.AT WACC - Weighted Average Cost of Capital
The WACC of Performance Technologies IT Solutions SA (PERF.AT) is 8.2%.
| Range | Selected | |
| Cost of equity | 7.1% - 9.8% | 8.45% |
| Tax rate | 22.6% - 23.7% | 23.15% |
| Cost of debt | 4.0% - 7.2% | 5.6% |
| WACC | 6.9% - 9.6% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 8.8% | 9.8% |
| Adjusted beta | 0.43 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 9.8% |
| Tax rate | 22.6% | 23.7% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.0% | 7.2% |
| After-tax WACC | 6.9% | 9.6% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PERF.AT | Performance Technologies IT Solutions SA | 0.06 | 0.62 | 0.6 |
| BCM.WA | Betacom SA | 0.08 | 0.16 | 0.15 |
| BYTE.AT | Byte Computer SA | 0.1 | 0.93 | 0.86 |
| C1V.DE | mVISE AG | 0.51 | 1.29 | 0.93 |
| CYB1.ST | Cyber Security 1 AB | 16.84 | 0.44 | 0.03 |
| FPG.PA | Union Technologies Informatique Group SA | 2.12 | -0.31 | -0.12 |
| NTEK B.ST | Novotek AB | 0.04 | 0.15 | 0.14 |
| PRCO B.ST | Precio Fishbone AB | 0.1 | 0.17 | 0.16 |
| RED.LS | Reditus Sociedade Gestora de Participacoes Sociais SA | 105.44 | 0.33 | 0 |
| TRD.L | Triad Group PLC | 0.02 | 0.7 | 0.69 |
| Low | High | |
| Unlevered beta | 0.15 | 0.34 |
| Relevered beta | 0.15 | 0.36 |
| Adjusted relevered beta | 0.43 | 0.57 |
PERF.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 PERF.AT:
cost_of_equity (8.45%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.43) + 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.