KYLO.AT WACC - Weighted Average Cost of Capital

The WACC of Loulis Mills SA (KYLO.AT) is 7.3%.

The Cost of Equity of Loulis Mills SA (KYLO.AT) is 10.55%.

The Cost of Debt of Loulis Mills SA (KYLO.AT) is 4.35%.

	Range	Selected
Cost of equity	7.10% - 14.00%	10.55%
Tax rate	24.50% - 32.60%	28.55%
Cost of debt	4.20% - 4.50%	4.35%
WACC	5.4% - 9.3%	7.3%

WACC

KYLO.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.43	0.99

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	14.00%

Tax rate	24.50%	32.60%
Debt/Equity ratio	0.75	0.75
Cost of debt	4.20%	4.50%

After-tax WACC	5.4%	9.3%


Selected WACC	7.3%

KYLO.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 KYLO.AT:

cost_of_equity (10.55%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.43) + 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.