VOSYS.AT WACC - Weighted Average Cost of Capital

The WACC of Vogiatzoglou Systems SA (VOSYS.AT) is 5.9%.

The Cost of Equity of Vogiatzoglou Systems SA (VOSYS.AT) is 7.15%.

The Cost of Debt of Vogiatzoglou Systems SA (VOSYS.AT) is 4.50%.

	Range	Selected
Cost of equity	6.20% - 8.10%	7.15%
Tax rate	20.50% - 26.80%	23.65%
Cost of debt	4.40% - 4.60%	4.50%
WACC	5.3% - 6.6%	5.9%

WACC

VOSYS.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.33	0.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	8.10%

Tax rate	20.50%	26.80%
Debt/Equity ratio	0.49	0.49
Cost of debt	4.40%	4.60%

After-tax WACC	5.3%	6.6%


Selected WACC	5.9%

VOSYS.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 VOSYS.AT:

cost_of_equity (7.15%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.33) + 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.