PETRO.AT WACC - Weighted Average Cost of Capital

The WACC of Petros Petropoulos SA (PETRO.AT) is 10.0%.

The Cost of Equity of Petros Petropoulos SA (PETRO.AT) is 16.20%.

The Cost of Debt of Petros Petropoulos SA (PETRO.AT) is 7.10%.

	Range	Selected
Cost of equity	14.30% - 18.10%	16.20%
Tax rate	27.30% - 29.30%	28.30%
Cost of debt	4.40% - 9.80%	7.10%
WACC	8.2% - 11.9%	10.0%

WACC

PETRO.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	1.26	1.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.30%	18.10%

Tax rate	27.30%	29.30%
Debt/Equity ratio	1.24	1.24
Cost of debt	4.40%	9.80%

After-tax WACC	8.2%	11.9%


Selected WACC	10.0%

PETRO.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 PETRO.AT:

cost_of_equity (16.20%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (1.26) + 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.