The WACC of Eyemaxx Real Estate AG (BNT1.DE) is 5.7%.
Range | Selected | |
Cost of equity | 15.40% - 25.90% | 20.65% |
Tax rate | 21.90% - 27.00% | 24.45% |
Cost of debt | 7.00% - 7.30% | 7.15% |
WACC | 5.7% - 5.8% | 5.7% |
Category | Low | High |
Long-term bond rate | 2.0% | 2.5% |
Equity market risk premium | 4.7% | 5.7% |
Adjusted beta | 2.82 | 3.99 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 15.40% | 25.90% |
Tax rate | 21.90% | 27.00% |
Debt/Equity ratio | 44.52 | 44.52 |
Cost of debt | 7.00% | 7.30% |
After-tax WACC | 5.7% | 5.8% |
Selected WACC | 5.7% | |
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 BNT1.DE:
cost_of_equity (20.65%) = risk_free_rate (2.25%) + equity_risk_premium (5.20%) * adjusted_beta (2.82) + 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.