EUPIC.AT WACC - Weighted Average Cost of Capital

The WACC of European Reliance General Insurance Co SA (EUPIC.AT) is 9.1%.

The Cost of Equity of European Reliance General Insurance Co SA (EUPIC.AT) is 9.20%.

The Cost of Debt of European Reliance General Insurance Co SA (EUPIC.AT) is 5.00%.

	Range	Selected
Cost of equity	8.00% - 10.40%	9.20%
Tax rate	23.80% - 27.10%	25.45%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.9% - 10.3%	9.1%

WACC

EUPIC.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.53	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	10.40%

Tax rate	23.80%	27.10%
Debt/Equity ratio	0	0
Cost of debt	5.00%	5.00%

After-tax WACC	7.9%	10.3%


Selected WACC	9.1%

EUPIC.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 EUPIC.AT:

cost_of_equity (9.20%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.53) + 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.