PROFK.AT
Pipe Works L Girakian Profil SA
Price:  
1.43 
EUR
Volume:  
671.00
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 7.1%.

The Cost of Equity of Pipe Works L Girakian Profil SA (PROFK.AT) is 9.75%.
The Cost of Debt of Pipe Works L Girakian Profil SA (PROFK.AT) is 7.35%.

Range Selected
Cost of equity 7.70% - 11.80% 9.75%
Tax rate 9.50% - 16.70% 13.10%
Cost of debt 7.00% - 7.70% 7.35%
WACC 6.6% - 7.6% 7.1%
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 0.5 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 11.80%
Tax rate 9.50% 16.70%
Debt/Equity ratio 3.66 3.66
Cost of debt 7.00% 7.70%
After-tax WACC 6.6% 7.6%
Selected WACC 7.1%

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 (9.75%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.5) + 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.