The WACC of Compleo Charging Solutions AG (C0M.DE) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.30% - 8.50% | 6.90% |
| Tax rate | 27.70% - 31.50% | 29.60% |
| Cost of debt | 7.00% - 7.90% | 7.45% |
| WACC | 5.2% - 6.8% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.5 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.30% | 8.50% |
| Tax rate | 27.70% | 31.50% |
| Debt/Equity ratio | 1.13 | 1.13 |
| Cost of debt | 7.00% | 7.90% |
| After-tax WACC | 5.2% | 6.8% |
| Selected WACC | 6.0% | |
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 C0M.DE:
cost_of_equity (6.90%) = risk_free_rate (2.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.5) + 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.