PRD.AT WACC - Weighted Average Cost of Capital

The WACC of Proodeftiki Technical Co SA (PRD.AT) is 6.1%.

The Cost of Equity of Proodeftiki Technical Co SA (PRD.AT) is 6.90%.

The Cost of Debt of Proodeftiki Technical Co SA (PRD.AT) is 5.50%.

	Range	Selected
Cost of equity	6.20% - 7.60%	6.90%
Tax rate	23.20% - 24.00%	23.60%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.3% - 6.9%	6.1%

WACC

PRD.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.33	0.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	7.60%

Tax rate	23.20%	24.00%
Debt/Equity ratio	0.39	0.39
Cost of debt	4.00%	7.00%

After-tax WACC	5.3%	6.9%


Selected WACC	6.1%

PRD.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 PRD.AT:

cost_of_equity (6.90%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.33) + 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.