AOF.DE WACC - Weighted Average Cost of Capital
The WACC of Atoss Software AG (AOF.DE) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.1% | 7.2% |
| Tax rate | 32.3% - 32.6% | 32.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.3% - 8.1% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.69 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.1% |
| Tax rate | 32.3% | 32.6% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.3% | 8.1% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AOF.DE | Atoss Software AG | 0 | 0.59 | 0.59 |
| ALESK.PA | Esker SA | 0.01 | 0.69 | 0.69 |
| CBRAIN.CO | Cbrain A/S | 0.01 | -0.06 | -0.06 |
| DOTD.L | dotDigital Group PLC | 0.01 | 0.94 | 0.93 |
| LTG.L | Learning Technologies Group PLC | 0.21 | 0.61 | 0.54 |
| LVC.WA | Livechat Software SA | 0 | 0.47 | 0.47 |
| MUM.DE | Mensch und Maschine Software SE | 0.02 | 0.62 | 0.61 |
| RIB.DE | RIB Software SE | 0.01 | 0.45 | 0.45 |
| RIVER.OL | River Tech plc | 0.06 | 0.56 | 0.54 |
| VIT B.ST | Vitec Software Group AB (publ) | 0.14 | 0.61 | 0.56 |
| Low | High | |
| Unlevered beta | 0.54 | 0.57 |
| Relevered beta | 0.54 | 0.57 |
| Adjusted relevered beta | 0.69 | 0.71 |
AOF.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 AOF.DE:
cost_of_equity (7.20%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.69) + 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.