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.