TEDE.TA WACC - Weighted Average Cost of Capital

The WACC of Tedea Technological Development and Automation Ltd (TEDE.TA) is 9.1%.

The Cost of Equity of Tedea Technological Development and Automation Ltd (TEDE.TA) is 9.80%.

The Cost of Debt of Tedea Technological Development and Automation Ltd (TEDE.TA) is 6.45%.

	Range	Selected
Cost of equity	8.40% - 11.20%	9.80%
Tax rate	10.20% - 12.30%	11.25%
Cost of debt	5.90% - 7.00%	6.45%
WACC	7.9% - 10.3%	9.1%

WACC

TEDE.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.59	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	11.20%

Tax rate	10.20%	12.30%
Debt/Equity ratio	0.22	0.22
Cost of debt	5.90%	7.00%

After-tax WACC	7.9%	10.3%


Selected WACC	9.1%

TEDE.TA'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 TEDE.TA:

cost_of_equity (9.80%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.59) + 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.