ADJ.DE WACC - Weighted Average Cost of Capital

The WACC of Adler Group SA (ADJ.DE) is 5.9%.

The Cost of Equity of Adler Group SA (ADJ.DE) is 57.40%.

The Cost of Debt of Adler Group SA (ADJ.DE) is 6.30%.

	Range	Selected
Cost of equity	27.70% - 87.10%	57.40%
Tax rate	9.90% - 12.30%	11.10%
Cost of debt	5.60% - 7.00%	6.30%
WACC	5.2% - 6.7%	5.9%

WACC

ADJ.DE WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.1%	6.1%
Adjusted beta	4.89	13.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.70%	87.10%

Tax rate	9.90%	12.30%
Debt/Equity ratio	145.37	145.37
Cost of debt	5.60%	7.00%

After-tax WACC	5.2%	6.7%


Selected WACC	5.9%

ADJ.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 ADJ.DE:

cost_of_equity (57.40%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (4.89) + 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.