DBK.DE
Deutsche Bank AG
Price:  
23.50 
EUR
Volume:  
7,614,087.00
Germany | Capital Markets
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DBK.DE WACC - Weighted Average Cost of Capital

The WACC of Deutsche Bank AG (DBK.DE) is 5.0%.

The Cost of Equity of Deutsche Bank AG (DBK.DE) is 11.15%.
The Cost of Debt of Deutsche Bank AG (DBK.DE) is 5.00%.

Range Selected
Cost of equity 8.40% - 13.90% 11.15%
Tax rate 21.10% - 29.10% 25.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.7% - 5.3% 5.0%
WACC

DBK.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.11 1.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 13.90%
Tax rate 21.10% 29.10%
Debt/Equity ratio 4.91 4.91
Cost of debt 5.00% 5.00%
After-tax WACC 4.7% 5.3%
Selected WACC 5.0%

DBK.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 DBK.DE:

cost_of_equity (11.15%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (1.11) + 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.