BEI.DE
Beiersdorf AG
Price:  
119.85 
EUR
Volume:  
251,815
Germany | Personal Products

BEI.DE WACC - Weighted Average Cost of Capital

The WACC of Beiersdorf AG (BEI.DE) is 6.7%.

The Cost of Equity of Beiersdorf AG (BEI.DE) is 6.7%.
The Cost of Debt of Beiersdorf AG (BEI.DE) is 8.9%.

RangeSelected
Cost of equity5.6% - 7.8%6.7%
Tax rate29.7% - 29.8%29.75%
Cost of debt4.0% - 13.8%8.9%
WACC5.5% - 7.9%6.7%
WACC

BEI.DE WACC calculation

CategoryLowHigh
Long-term bond rate2.8%3.3%
Equity market risk premium5.1%6.1%
Adjusted beta0.550.67
Additional risk adjustments0.0%0.5%
Cost of equity5.6%7.8%
Tax rate29.7%29.8%
Debt/Equity ratio
0.010.01
Cost of debt4.0%13.8%
After-tax WACC5.5%7.9%
Selected WACC6.7%

BEI.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 BEI.DE:

cost_of_equity (6.70%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.55) + 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.