TENERGY.AT WACC - Weighted Average Cost of Capital

The WACC of Terna Energy SA (TENERGY.AT) is 7.4%.

The Cost of Equity of Terna Energy SA (TENERGY.AT) is 8.85%.

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

	Range	Selected
Cost of equity	8.00% - 9.70%	8.85%
Tax rate	24.10% - 25.50%	24.80%
Cost of debt	4.60% - 6.90%	5.75%
WACC	6.5% - 8.2%	7.4%

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	0.53	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	9.70%

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

After-tax WACC	6.5%	8.2%


Selected WACC	7.4%

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 (8.85%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.53) + 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.