PRODEA.AT WACC - Weighted Average Cost of Capital

The WACC of Prontea Ependyseon Se Akiniti Periousia AE (PRODEA.AT) is 8.8%.

The Cost of Equity of Prontea Ependyseon Se Akiniti Periousia AE (PRODEA.AT) is 10.60%.

The Cost of Debt of Prontea Ependyseon Se Akiniti Periousia AE (PRODEA.AT) is 7.05%.

	Range	Selected
Cost of equity	7.40% - 13.80%	10.60%
Tax rate	2.80% - 5.70%	4.25%
Cost of debt	5.50% - 8.60%	7.05%
WACC	6.4% - 11.1%	8.8%

WACC

PRODEA.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.46	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.40%	13.80%

Tax rate	2.80%	5.70%
Debt/Equity ratio	0.89	0.89
Cost of debt	5.50%	8.60%

After-tax WACC	6.4%	11.1%


Selected WACC	8.8%

PRODEA.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 PRODEA.AT:

cost_of_equity (10.60%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.46) + 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.