VIO.AT WACC - Weighted Average Cost of Capital

The WACC of Viohalco SA (VIO.AT) is 9.0%.

The Cost of Equity of Viohalco SA (VIO.AT) is 16.75%.

The Cost of Debt of Viohalco SA (VIO.AT) is 5.25%.

	Range	Selected
Cost of equity	14.10% - 19.40%	16.75%
Tax rate	21.90% - 24.60%	23.25%
Cost of debt	4.00% - 6.50%	5.25%
WACC	7.4% - 10.6%	9.0%

WACC

VIO.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	1.23	1.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	19.40%

Tax rate	21.90%	24.60%
Debt/Equity ratio	1.54	1.54
Cost of debt	4.00%	6.50%

After-tax WACC	7.4%	10.6%


Selected WACC	9.0%

VIO.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 VIO.AT:

cost_of_equity (16.75%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (1.23) + 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.