DB1.DE WACC - Weighted Average Cost of Capital
The WACC of Deutsche Boerse AG (DB1.DE) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.9% | 7.5% |
| Tax rate | 25.9% - 26.2% | 26.05% |
| Cost of debt | 5.7% - 11.3% | 8.5% |
| WACC | 5.5% - 8.7% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.64 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.9% |
| Tax rate | 25.9% | 26.2% |
| Debt/Equity ratio | 0.48 | 0.48 |
| Cost of debt | 5.7% | 11.3% |
| After-tax WACC | 5.5% | 8.7% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DB1.DE | Deutsche Boerse AG | 0.48 | 0.54 | 0.4 |
| AQX.L | Aquis Exchange PLC | 0.01 | -0.2 | -0.19 |
| CFV.MI | Confinvest FL SpA | 0.1 | 0.28 | 0.26 |
| ENX.PA | Euronext NV | 0.2 | 0.19 | 0.16 |
| EXAE.AT | Hellenic Exchanges Athens Stock Exchange SA | 0 | 1.13 | 1.12 |
| GPW.WA | Gielda Papierow Wartosciowych w Warszawie SA | 0.01 | 0.63 | 0.62 |
| LSEG.L | London Stock Exchange Group PLC | 0.18 | 0.58 | 0.51 |
| NTS.WA | Notoria Serwis SA | 0 | -0.34 | -0.34 |
| PGHN.SW | Partners Group Holding AG | 0.08 | 1.59 | 1.51 |
| NDAQ | Nasdaq Inc | 0.18 | 0.81 | 0.71 |
| Low | High | |
| Unlevered beta | 0.34 | 0.56 |
| Relevered beta | 0.46 | 0.75 |
| Adjusted relevered beta | 0.64 | 0.83 |
DB1.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 DB1.DE:
cost_of_equity (7.50%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.64) + 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.