REVOIL.AT WACC - Weighted Average Cost of Capital

The WACC of Revoil Petroleum Company SA (REVOIL.AT) is 9.0%.

The Cost of Equity of Revoil Petroleum Company SA (REVOIL.AT) is 13.30%.

The Cost of Debt of Revoil Petroleum Company SA (REVOIL.AT) is 8.55%.

	Range	Selected
Cost of equity	10.20% - 16.40%	13.30%
Tax rate	14.30% - 25.00%	19.65%
Cost of debt	8.50% - 8.60%	8.55%
WACC	8.2% - 9.7%	9.0%

WACC

REVOIL.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.78	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	16.40%

Tax rate	14.30%	25.00%
Debt/Equity ratio	2.04	2.04
Cost of debt	8.50%	8.60%

After-tax WACC	8.2%	9.7%


Selected WACC	9.0%

REVOIL.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 REVOIL.AT:

cost_of_equity (13.30%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.78) + 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.