POS.VI
Porr AG
Price:  
29.75 
EUR
Volume:  
23,010
Austria | Construction & Engineering

POS.VI WACC - Weighted Average Cost of Capital

The WACC of Porr AG (POS.VI) is 8.4%.

The Cost of Equity of Porr AG (POS.VI) is 7.6%.
The Cost of Debt of Porr AG (POS.VI) is 13.5%.

RangeSelected
Cost of equity6.1% - 9.1%7.6%
Tax rate24.9% - 25.9%25.4%
Cost of debt11.3% - 15.7%13.5%
WACC6.9% - 10.0%8.4%
WACC

POS.VI WACC calculation

CategoryLowHigh
Long-term bond rate2.8%3.3%
Equity market risk premium5.7%6.7%
Adjusted beta0.590.8
Additional risk adjustments0.0%0.5%
Cost of equity6.1%9.1%
Tax rate24.9%25.9%
Debt/Equity ratio
0.50.5
Cost of debt11.3%15.7%
After-tax WACC6.9%10.0%
Selected WACC8.4%

POS.VI'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 POS.VI:

cost_of_equity (7.60%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.59) + 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.