CNTG WACC - Weighted Average Cost of Capital
The WACC of Centogene NV (CNTG) is 9.0%.
| Range | Selected | |
| Cost of equity | 13.0% - 31.1% | 22.05% |
| Tax rate | 0.3% - 0.5% | 0.4% |
| Cost of debt | 7.0% - 8.4% | 7.7% |
| WACC | 7.5% - 10.4% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.99 | 4.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.0% | 31.1% |
| Tax rate | 0.3% | 0.5% |
| Debt/Equity ratio | 10.02 | 10.02 |
| Cost of debt | 7.0% | 8.4% |
| After-tax WACC | 7.5% | 10.4% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CNTG | Centogene NV | 10.02 | 1.39 | 0.13 |
| AVEO | Aveo Pharmaceuticals Inc | 0.07 | 1 | 0.94 |
| BNTX | BioNTech SE | 0.01 | 1.09 | 1.07 |
| KIN | Kindred Biosciences Inc | 0.05 | 1.32 | 1.26 |
| PRQR | ProQR Therapeutics NV | 0.11 | 2.07 | 1.86 |
| TRVN | Trevena Inc | 32.74 | 0.72 | 0.02 |
| XOMA | XOMA Corp | 0.4 | 1.35 | 0.97 |
| BIO.DE | Biotest AG | 0.39 | -0.09 | -0.06 |
| HPHA.DE | Heidelberg Pharma AG | 0.14 | 0.36 | 0.32 |
| MOR.DE | MorphoSys AG | 0.1 | 0.01 | 0.01 |
| Low | High | |
| Unlevered beta | 0.24 | 0.95 |
| Relevered beta | 2.48 | 6.49 |
| Adjusted relevered beta | 1.99 | 4.68 |
CNTG'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 CNTG:
cost_of_equity (22.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.99) + 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.