AAD.DE WACC - Weighted Average Cost of Capital
The WACC of Amadeus Fire AG (AAD.DE) is 6.9%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.2% | 7.65% |
| Tax rate | 29.3% - 30.1% | 29.7% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 8.2% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.66 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.2% |
| Tax rate | 29.3% | 30.1% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 8.2% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AAD.DE | Amadeus Fire AG | 0.2 | 0.62 | 0.54 |
| ALDLS.PA | Dlsi SA | 0.35 | 0.39 | 0.32 |
| EEZY.HE | Eezy Plc | 2.88 | 0.78 | 0.26 |
| EMR.L | Empresaria Group PLC | 2.5 | -0.04 | -0.02 |
| HAS.L | Hays PLC | 0.21 | 1.34 | 1.17 |
| PAGE.L | Pagegroup PLC | 0.16 | 1.49 | 1.34 |
| PRP.L | Prime People PLC | 0.36 | 1.88 | 1.5 |
| RTC.L | RTC Group PLC | 0.23 | 0.11 | 0.1 |
| STEM.L | SThree PLC | 0.13 | 1.12 | 1.03 |
| WSE.WA | Work Service SA | 2.49 | 1.39 | 0.5 |
| Low | High | |
| Unlevered beta | 0.43 | 0.73 |
| Relevered beta | 0.49 | 0.84 |
| Adjusted relevered beta | 0.66 | 0.89 |
AAD.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 AAD.DE:
cost_of_equity (7.65%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.66) + 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.