PROFK.AT
Pipe Works L Girakian Profil SA
Price:  
1.38 
EUR
Volume:  
51.00
Greece | Metals & Mining
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PROFK.AT WACC - Weighted Average Cost of Capital

The WACC of Pipe Works L Girakian Profil SA (PROFK.AT) is 7.0%.

The Cost of Equity of Pipe Works L Girakian Profil SA (PROFK.AT) is 9.65%.
The Cost of Debt of Pipe Works L Girakian Profil SA (PROFK.AT) is 7.35%.

Range Selected
Cost of equity 7.80% - 11.50% 9.65%
Tax rate 9.50% - 16.70% 13.10%
Cost of debt 7.00% - 7.70% 7.35%
WACC 6.6% - 7.5% 7.0%
WACC

PROFK.AT WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 8.8% 9.8%
Adjusted beta 0.52 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 11.50%
Tax rate 9.50% 16.70%
Debt/Equity ratio 3.88 3.88
Cost of debt 7.00% 7.70%
After-tax WACC 6.6% 7.5%
Selected WACC 7.0%

PROFK.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 PROFK.AT:

cost_of_equity (9.65%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.52) + 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.