BNN.DE WACC - Weighted Average Cost of Capital
The WACC of BRAIN Biotechnology Research and Information Network AG (BNN.DE) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.2% - 6.9% | 6.05% |
| Tax rate | 6.1% - 8.7% | 7.4% |
| Cost of debt | 5.7% - 7.0% | 6.35% |
| WACC | 5.3% - 6.7% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.38 | 0.43 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.2% | 6.9% |
| Tax rate | 6.1% | 8.7% |
| Debt/Equity ratio | 0.62 | 0.62 |
| Cost of debt | 5.7% | 7.0% |
| After-tax WACC | 5.3% | 6.7% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BNN.DE | BRAIN Biotechnology Research and Information Network AG | 0.62 | 0.89 | 0.57 |
| ABT.OL | Aqua Bio Technology ASA | 0.36 | 0.84 | 0.63 |
| ALBKK.PA | Baikowski SASU | 0.18 | 0.16 | 0.14 |
| ALDEI.PA | Deinove SA | 7.98 | 0.24 | 0.03 |
| DCTA.L | Directa Plus PLC | 0.15 | -0.74 | -0.65 |
| EVE.SW | Evolva Holding SA | 1.83 | 0.54 | 0.2 |
| HAYD.L | Haydale Graphene Industries PLC | 0.09 | 0.08 | 0.07 |
| LCLEAN.ST | Lifeclean International AB (publ) | 1.19 | -0.96 | -0.46 |
| POLYG.ST | Polygiene AB | 0.01 | 0.06 | 0.06 |
| CZO.V | Ceapro Inc | 0.13 | -0.47 | -0.42 |
| Low | High | |
| Unlevered beta | 0.05 | 0.1 |
| Relevered beta | 0.07 | 0.15 |
| Adjusted relevered beta | 0.38 | 0.43 |
BNN.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 BNN.DE:
cost_of_equity (6.05%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.38) + 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.