PERF.AT WACC - Weighted Average Cost of Capital

The WACC of Performance Technologies IT Solutions SA (PERF.AT) is 8.4%.

The Cost of Equity of Performance Technologies IT Solutions SA (PERF.AT) is 8.60%.

The Cost of Debt of Performance Technologies IT Solutions SA (PERF.AT) is 5.60%.

	Range	Selected
Cost of equity	7.10% - 10.10%	8.60%
Tax rate	22.60% - 23.70%	23.15%
Cost of debt	4.00% - 7.20%	5.60%
WACC	6.9% - 9.9%	8.4%

WACC

PERF.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.43	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	10.10%

Tax rate	22.60%	23.70%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	7.20%

After-tax WACC	6.9%	9.9%


Selected WACC	8.4%

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 (8.60%) = 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.