The WACC of Attica Bank SA (TATT.AT) is 7.9%.
Range | Selected | |
Cost of equity | 7.1% - 9.4% | 8.25% |
Tax rate | 5.7% - 7.7% | 6.7% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 6.9% - 8.9% | 7.9% |
Category | Low | High |
Long-term bond rate | 3.3% | 3.8% |
Equity market risk premium | 8.8% | 9.8% |
Adjusted beta | 0.44 | 0.53 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.1% | 9.4% |
Tax rate | 5.7% | 7.7% |
Debt/Equity ratio | 0.13 | 0.13 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 6.9% | 8.9% |
Selected WACC | 7.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
TATT.AT | Attica Bank SA | 0.13 | 3.88 | 3.46 |
ARBB.L | Arbuthnot Banking Group PLC | 0.6 | 0.23 | 0.15 |
ATMA.L | Atlas Mara Ltd | 42.41 | 0.98 | 0.02 |
BOS.WA | Bank Ochrony Srodowiska SA | 0.37 | 1.04 | 0.77 |
BST.MI | Banca Sistema SpA | 26.04 | 1.09 | 0.04 |
KOMP.OL | Komplett Bank ASA | 0.08 | 1.88 | 1.75 |
LASP.CO | Laan & Spar Bank A/S | 0.4 | 0.18 | 0.13 |
MIL.WA | Bank Millennium SA | 0.45 | 1.48 | 1.04 |
SPKSJF.CO | Sparekassen Sjaelland-Fyn A/S | 0.23 | 0.2 | 0.16 |
SPOG.OL | Sparebanken Ost | 14.88 | 0.58 | 0.04 |
TFBANK.ST | TF Bank AB | 0.05 | 0.42 | 0.4 |
Low | High | |
Unlevered beta | 0.15 | 0.4 |
Relevered beta | 0.16 | 0.3 |
Adjusted relevered beta | 0.44 | 0.53 |
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 TATT.AT:
cost_of_equity (8.25%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.44) + 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.