SAR.AT WACC - Weighted Average Cost of Capital

The WACC of Gr Sarantis SA (SAR.AT) is 8.7%.

The Cost of Equity of Gr Sarantis SA (SAR.AT) is 9.15%.

The Cost of Debt of Gr Sarantis SA (SAR.AT) is 4.45%.

	Range	Selected
Cost of equity	7.60% - 10.70%	9.15%
Tax rate	15.20% - 17.50%	16.35%
Cost of debt	4.20% - 4.70%	4.45%
WACC	7.2% - 10.1%	8.7%

WACC

SAR.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.49	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	10.70%

Tax rate	15.20%	17.50%
Debt/Equity ratio	0.1	0.1
Cost of debt	4.20%	4.70%

After-tax WACC	7.2%	10.1%


Selected WACC	8.7%

SAR.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 SAR.AT:

cost_of_equity (9.15%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.49) + 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.