2GB.DE
2G Energy AG
Price:  
31.75 
EUR
Volume:  
62,961.00
Germany | Electrical Equipment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

2GB.DE WACC - Weighted Average Cost of Capital

The WACC of 2G Energy AG (2GB.DE) is 7.8%.

The Cost of Equity of 2G Energy AG (2GB.DE) is 7.85%.
The Cost of Debt of 2G Energy AG (2GB.DE) is 5.30%.

Range Selected
Cost of equity 6.60% - 9.10% 7.85%
Tax rate 30.00% - 31.40% 30.70%
Cost of debt 4.00% - 6.60% 5.30%
WACC 6.6% - 9.1% 7.8%
WACC

2GB.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.76 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 9.10%
Tax rate 30.00% 31.40%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 6.60%
After-tax WACC 6.6% 9.1%
Selected WACC 7.8%

2GB.DE'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 2GB.DE:

cost_of_equity (7.85%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.76) + 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.