CAI.VI WACC - Weighted Average Cost of Capital

The WACC of CA Immobilien Anlagen AG (CAI.VI) is 4.9%.

The Cost of Equity of CA Immobilien Anlagen AG (CAI.VI) is 6.35%.

The Cost of Debt of CA Immobilien Anlagen AG (CAI.VI) is 4.95%.

	Range	Selected
Cost of equity	5.50% - 7.20%	6.35%
Tax rate	24.70% - 28.10%	26.40%
Cost of debt	4.00% - 5.90%	4.95%
WACC	4.2% - 5.6%	4.9%

WACC

CAI.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.47	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	7.20%

Tax rate	24.70%	28.10%
Debt/Equity ratio	1.11	1.11
Cost of debt	4.00%	5.90%

After-tax WACC	4.2%	5.6%


Selected WACC	4.9%

CAI.VI'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 CAI.VI:

cost_of_equity (6.35%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.47) + 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.