DEX.DE
Delticom AG
Price:  
2.49 
EUR
Volume:  
8,901.00
Germany | Internet & Direct Marketing Retail
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DEX.DE WACC - Weighted Average Cost of Capital

The WACC of Delticom AG (DEX.DE) is 5.5%.

The Cost of Equity of Delticom AG (DEX.DE) is 11.90%.
The Cost of Debt of Delticom AG (DEX.DE) is 4.25%.

Range Selected
Cost of equity 8.70% - 15.10% 11.90%
Tax rate 31.00% - 41.50% 36.25%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.6% - 6.4% 5.5%
WACC

DEX.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.16 1.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 15.10%
Tax rate 31.00% 41.50%
Debt/Equity ratio 2.27 2.27
Cost of debt 4.00% 4.50%
After-tax WACC 4.6% 6.4%
Selected WACC 5.5%

DEX.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 DEX.DE:

cost_of_equity (11.90%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (1.16) + 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.