The WACC of SLM Solutions Group AG (AM3D.DE) is 6.2%.
Range | Selected | |
Cost of equity | 5.3% - 7.2% | 6.25% |
Tax rate | 9.8% - 15.1% | 12.45% |
Cost of debt | 5.7% - 7.0% | 6.35% |
WACC | 5.3% - 7.1% | 6.2% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 5.5% | 6.5% |
Adjusted beta | 0.41 | 0.48 |
Additional risk adjustments | 0.5% | 1.0% |
Cost of equity | 5.3% | 7.2% |
Tax rate | 9.8% | 15.1% |
Debt/Equity ratio | 0.12 | 0.12 |
Cost of debt | 5.7% | 7.0% |
After-tax WACC | 5.3% | 7.1% |
Selected WACC | 6.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
AM3D.DE | SLM Solutions Group AG | 0.12 | 0.15 | 0.14 |
ALCAR.IS | Alarko Carrier Sanayi ve Ticaret AS | 0.04 | 1.72 | 1.66 |
AZK.MC | Azkoyen SA | 0.13 | 0.31 | 0.28 |
GSC1.DE | Gesco AG | 0.4 | 0.62 | 0.46 |
JDG.L | Judges Scientific PLC | 0.13 | 0.11 | 0.1 |
MOLD.MI | Costamp Group SpA | 2.93 | 0.14 | 0.04 |
PWG.PA | Prodways Group SA | 0.41 | 0.62 | 0.45 |
SNG.DE | Singulus Technologies AG | 2.03 | 0.52 | 0.19 |
TOHN.SW | Tornos Holding AG | 0.05 | -0.12 | -0.12 |
VQT.DE | va Q tec AG | 0.18 | 0.23 | 0.19 |
Low | High | |
Unlevered beta | 0.17 | 0.23 |
Relevered beta | 0.12 | 0.22 |
Adjusted relevered beta | 0.41 | 0.48 |
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 AM3D.DE:
cost_of_equity (6.25%) = risk_free_rate (2.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.41) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.