TPEIR.AT WACC - Weighted Average Cost of Capital

The WACC of Piraeus Financial Holdings SA (TPEIR.AT) is 10.5%.

The Cost of Equity of Piraeus Financial Holdings SA (TPEIR.AT) is 13.60%.

The Cost of Debt of Piraeus Financial Holdings SA (TPEIR.AT) is 5.00%.

	Range	Selected
Cost of equity	11.80% - 15.40%	13.60%
Tax rate	19.20% - 24.10%	21.65%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.4% - 11.7%	10.5%

WACC

TPEIR.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.97	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	15.40%

Tax rate	19.20%	24.10%
Debt/Equity ratio	0.46	0.46
Cost of debt	5.00%	5.00%

After-tax WACC	9.4%	11.7%


Selected WACC	10.5%

TPEIR.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 TPEIR.AT:

cost_of_equity (13.60%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.97) + 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.