AM3D.DE
SLM Solutions Group AG
Price:  
18.96 
EUR
Volume:  
10,461
Germany | Machinery

AM3D.DE WACC - Weighted Average Cost of Capital

The WACC of SLM Solutions Group AG (AM3D.DE) is 6.2%.

The Cost of Equity of SLM Solutions Group AG (AM3D.DE) is 6.25%.
The Cost of Debt of SLM Solutions Group AG (AM3D.DE) is 6.35%.

RangeSelected
Cost of equity5.3% - 7.2%6.25%
Tax rate9.8% - 15.1%12.45%
Cost of debt5.7% - 7.0%6.35%
WACC5.3% - 7.1%6.2%
WACC

AM3D.DE WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium5.5%6.5%
Adjusted beta0.410.48
Additional risk adjustments0.5%1.0%
Cost of equity5.3%7.2%
Tax rate9.8%15.1%
Debt/Equity ratio
0.120.12
Cost of debt5.7%7.0%
After-tax WACC5.3%7.1%
Selected WACC6.2%

AM3D.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 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.