WIE.VI WACC - Weighted Average Cost of Capital

The WACC of Wienerberger AG (WIE.VI) is 7.0%.

The Cost of Equity of Wienerberger AG (WIE.VI) is 9.10%.

The Cost of Debt of Wienerberger AG (WIE.VI) is 4.50%.

	Range	Selected
Cost of equity	7.80% - 10.40%	9.10%
Tax rate	19.60% - 25.70%	22.65%
Cost of debt	4.00% - 5.00%	4.50%
WACC	6.1% - 7.9%	7.0%

WACC

WIE.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.89	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.40%

Tax rate	19.60%	25.70%
Debt/Equity ratio	0.59	0.59
Cost of debt	4.00%	5.00%

After-tax WACC	6.1%	7.9%


Selected WACC	7.0%

WIE.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 WIE.VI:

cost_of_equity (9.10%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.89) + 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.