TENERGY.AT WACC - Weighted Average Cost of Capital

The WACC of Terna Energy SA (TENERGY.AT) is 7.8%.

The Cost of Equity of Terna Energy SA (TENERGY.AT) is 9.40%.

The Cost of Debt of Terna Energy SA (TENERGY.AT) is 5.75%.

	Range	Selected
Cost of equity	8.40% - 10.40%	9.40%
Tax rate	24.10% - 25.50%	24.80%
Cost of debt	4.60% - 6.90%	5.75%
WACC	6.8% - 8.7%	7.8%

WACC

TENERGY.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.58	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	10.40%

Tax rate	24.10%	25.50%
Debt/Equity ratio	0.48	0.48
Cost of debt	4.60%	6.90%

After-tax WACC	6.8%	8.7%


Selected WACC	7.8%

TENERGY.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 TENERGY.AT:

cost_of_equity (9.40%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.58) + 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.