DEZ.DE WACC - Weighted Average Cost of Capital
The WACC of DEUTZ AG (DEZ.DE) is 8.6%.
| Range | Selected | |
| Cost of equity | 5.6% - 10.1% | 7.85% |
| Tax rate | 3.5% - 14.9% | 9.2% |
| Cost of debt | 6.0% - 19.8% | 12.9% |
| WACC | 5.7% - 11.6% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.56 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 10.1% |
| Tax rate | 3.5% | 14.9% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 6.0% | 19.8% |
| After-tax WACC | 5.7% | 11.6% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DEZ.DE | DEUTZ AG | 0.28 | 1.52 | 1.2 |
| BOBNN.SW | Bobst Group SA | 0.36 | 1.32 | 0.98 |
| CON.SW | Conzzeta AG | 0 | 0.9 | 0.9 |
| GIL.DE | DMG Mori AG | 0.02 | 0.01 | 0.01 |
| MGAM.L | Morgan Advanced Materials PLC | 0.65 | 1.36 | 0.84 |
| NOEJ.DE | Norma Group SE | 0.98 | 1.62 | 0.83 |
| PFV.DE | Pfeiffer Vacuum Technology AG | 0.1 | 0.13 | 0.12 |
| SEM.VI | Semperit AG Holding | 1.06 | 0.32 | 0.16 |
| SKB.DE | Koenig & Bauer AG | 1.41 | 0.7 | 0.3 |
| WSU.DE | WashTec AG | 0.12 | 0.25 | 0.23 |
| Low | High | |
| Unlevered beta | 0.27 | 0.84 |
| Relevered beta | 0.34 | 1.06 |
| Adjusted relevered beta | 0.56 | 1.04 |
DEZ.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 DEZ.DE:
cost_of_equity (7.85%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.