ACT.DE WACC - Weighted Average Cost of Capital
The WACC of AlzChem Group AG (ACT.DE) is 7.5%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.3% | 7.7% |
| Tax rate | 26.8% - 27.2% | 27% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.9% - 9.1% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.64 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.3% |
| Tax rate | 26.8% | 27.2% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.9% | 9.1% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ACT.DE | AlzChem Group AG | 0.04 | 0.49 | 0.47 |
| CAR.L | Carclo PLC | 1.39 | 0.81 | 0.4 |
| DYOBY.IS | DYO Boya Fabrikalari Sanayi ve Ticaret AS | 0.46 | 1.12 | 0.83 |
| ELM.L | Elementis PLC | 0.26 | 1.12 | 0.94 |
| GUR.SW | Gurit Holding AG | 0.15 | 1.1 | 0.99 |
| NTG.DE | Nabaltec AG | 0.66 | 0.64 | 0.43 |
| PCR.WA | PCC Rokita SA | 0.43 | 0.47 | 0.36 |
| POLHO.IS | Polisan Holding AS | 0.29 | 1.04 | 0.85 |
| SCPA.L | Scapa Group PLC | 0.23 | 1.55 | 1.33 |
| SEFER.PA | Sergeferrari Group SA | 2.23 | 0.83 | 0.32 |
| Low | High | |
| Unlevered beta | 0.45 | 0.84 |
| Relevered beta | 0.46 | 0.87 |
| Adjusted relevered beta | 0.64 | 0.91 |
ACT.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 ACT.DE:
cost_of_equity (7.70%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.64) + 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.