TATT.AT
Attica Bank SA
Price:  
0.82 
EUR
Volume:  
685,190
Greece | Banks

TATT.AT WACC - Weighted Average Cost of Capital

The WACC of Attica Bank SA (TATT.AT) is 7.9%.

The Cost of Equity of Attica Bank SA (TATT.AT) is 8.25%.
The Cost of Debt of Attica Bank SA (TATT.AT) is 5%.

RangeSelected
Cost of equity7.1% - 9.4%8.25%
Tax rate5.7% - 7.7%6.7%
Cost of debt5.0% - 5.0%5%
WACC6.9% - 8.9%7.9%
WACC

TATT.AT WACC calculation

CategoryLowHigh
Long-term bond rate3.3%3.8%
Equity market risk premium8.8%9.8%
Adjusted beta0.440.53
Additional risk adjustments0.0%0.5%
Cost of equity7.1%9.4%
Tax rate5.7%7.7%
Debt/Equity ratio
0.130.13
Cost of debt5.0%5.0%
After-tax WACC6.9%8.9%
Selected WACC7.9%

TATT.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 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.