TKA.VI
Telekom Austria AG
Price:  
9.59 
EUR
Volume:  
30,832
Austria | Diversified Telecommunication Services

TKA.VI WACC - Weighted Average Cost of Capital

The WACC of Telekom Austria AG (TKA.VI) is 6.1%.

The Cost of Equity of Telekom Austria AG (TKA.VI) is 7.3%.
The Cost of Debt of Telekom Austria AG (TKA.VI) is 4.25%.

RangeSelected
Cost of equity5.8% - 8.8%7.3%
Tax rate21.9% - 22.9%22.4%
Cost of debt4.0% - 4.5%4.25%
WACC5.0% - 7.2%6.1%
WACC

TKA.VI WACC calculation

CategoryLowHigh
Long-term bond rate2.8%3.3%
Equity market risk premium5.7%6.7%
Adjusted beta0.540.75
Additional risk adjustments0.0%0.5%
Cost of equity5.8%8.8%
Tax rate21.9%22.9%
Debt/Equity ratio
0.420.42
Cost of debt4.0%4.5%
After-tax WACC5.0%7.2%
Selected WACC6.1%

TKA.VI'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 TKA.VI:

cost_of_equity (7.30%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.54) + 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.