PETRO.AT WACC - Weighted Average Cost of Capital

The WACC of Petros Petropoulos SA (PETRO.AT) is 10.2%.

The Cost of Equity of Petros Petropoulos SA (PETRO.AT) is 14.50%.

The Cost of Debt of Petros Petropoulos SA (PETRO.AT) is 6.95%.

	Range	Selected
Cost of equity	13.00% - 16.00%	14.50%
Tax rate	28.50% - 30.80%	29.65%
Cost of debt	4.50% - 9.40%	6.95%
WACC	8.6% - 11.7%	10.2%

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	1.11	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.00%	16.00%

Tax rate	28.50%	30.80%
Debt/Equity ratio	0.81	0.81
Cost of debt	4.50%	9.40%

After-tax WACC	8.6%	11.7%


Selected WACC	10.2%

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 (14.50%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (1.11) + 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.