DIC.DE WACC - Weighted Average Cost of Capital

The WACC of DIC Asset AG (DIC.DE) is 7.9%.

The Cost of Equity of DIC Asset AG (DIC.DE) is 8.25%.

The Cost of Debt of DIC Asset AG (DIC.DE) is 9.70%.

	Range	Selected
Cost of equity	5.40% - 11.10%	8.25%
Tax rate	18.00% - 18.70%	18.35%
Cost of debt	4.00% - 15.40%	9.70%
WACC	3.5% - 12.4%	7.9%

WACC

DIC.DE WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.5%	6.5%
Adjusted beta	0.51	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	11.10%

Tax rate	18.00%	18.70%
Debt/Equity ratio	10.43	10.43
Cost of debt	4.00%	15.40%

After-tax WACC	3.5%	12.4%


Selected WACC	7.9%

DIC.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 DIC.DE:

cost_of_equity (8.25%) = risk_free_rate (2.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.51) + 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.