ACWN.DE
AS Creation Tapeten AG
Price:  
5.70 
EUR
Volume:  
2,191.00
Germany | Household Durables
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ACWN.DE WACC - Weighted Average Cost of Capital

The WACC of AS Creation Tapeten AG (ACWN.DE) is 6.6%.

The Cost of Equity of AS Creation Tapeten AG (ACWN.DE) is 9.10%.
The Cost of Debt of AS Creation Tapeten AG (ACWN.DE) is 5.90%.

Range Selected
Cost of equity 7.50% - 10.70% 9.10%
Tax rate 34.50% - 42.70% 38.60%
Cost of debt 4.80% - 7.00% 5.90%
WACC 5.6% - 7.7% 6.6%
WACC

ACWN.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.92 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.70%
Tax rate 34.50% 42.70%
Debt/Equity ratio 0.79 0.79
Cost of debt 4.80% 7.00%
After-tax WACC 5.6% 7.7%
Selected WACC 6.6%

ACWN.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 ACWN.DE:

cost_of_equity (9.10%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.92) + 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.