SATOK.AT WACC - Weighted Average Cost of Capital

The WACC of Sato Office and Houseware Supplies SA (SATOK.AT) is 6.5%.

The Cost of Equity of Sato Office and Houseware Supplies SA (SATOK.AT) is 39.30%.

The Cost of Debt of Sato Office and Houseware Supplies SA (SATOK.AT) is 5.25%.

	Range	Selected
Cost of equity	29.80% - 48.80%	39.30%
Tax rate	6.00% - 7.20%	6.60%
Cost of debt	4.00% - 6.50%	5.25%
WACC	5.0% - 8.0%	6.5%

WACC

SATOK.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	3.02	4.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	29.80%	48.80%

Tax rate	6.00%	7.20%
Debt/Equity ratio	20.28	20.28
Cost of debt	4.00%	6.50%

After-tax WACC	5.0%	8.0%


Selected WACC	6.5%

SATOK.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 SATOK.AT:

cost_of_equity (39.30%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (3.02) + 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.