DDM.ST WACC - Weighted Average Cost of Capital
The WACC of DDM Holding AG (DDM.ST) is 13.8%.
| Range | Selected | |
| Cost of equity | 5.1% - 8.3% | 6.7% |
| Tax rate | 9.4% - 10.6% | 10% |
| Cost of debt | 10.3% - 22.5% | 16.4% |
| WACC | 8.9% - 18.7% | 13.8% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.5 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 8.3% |
| Tax rate | 9.4% | 10.6% |
| Debt/Equity ratio | 7.54 | 7.54 |
| Cost of debt | 10.3% | 22.5% |
| After-tax WACC | 8.9% | 18.7% |
| Selected WACC | 13.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DDM.ST | DDM Holding AG | 7.54 | 0.06 | 0.01 |
| B2H.OL | B2holding ASA | 4.17 | 0.4 | 0.08 |
| FRU.DE | Ferratum Oyj | 4.48 | 1.27 | 0.25 |
| HAT.L | H & T Group PLC | 0.32 | 0.56 | 0.43 |
| HOFI.ST | Hoist Finance AB (publ) | 6.38 | 0.68 | 0.1 |
| MBC.DE | MyBucks SA | 126.78 | 1.49 | 0.01 |
| MCL.L | Morses Club PLC | 48.49 | 2.08 | 0.05 |
| PCF.L | PCF Group PLC | 175.29 | 1.35 | 0.01 |
| QLIRO.ST | Qliro AB | 4.49 | 0.45 | 0.09 |
| RESURS.ST | Resurs Holding AB (publ) | 8.75 | -0.08 | -0.01 |
| Low | High | |
| Unlevered beta | 0.03 | 0.09 |
| Relevered beta | 0.25 | 0.67 |
| Adjusted relevered beta | 0.5 | 0.78 |
DDM.ST'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 DDM.ST:
cost_of_equity (6.70%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * 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.