DIM.PA
Sartorius Stedim Biotech SA
Price:  
203.10 
EUR
Volume:  
40,447.00
France | Life Sciences Tools & Services
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DIM.PA WACC - Weighted Average Cost of Capital

The WACC of Sartorius Stedim Biotech SA (DIM.PA) is 8.3%.

The Cost of Equity of Sartorius Stedim Biotech SA (DIM.PA) is 8.90%.
The Cost of Debt of Sartorius Stedim Biotech SA (DIM.PA) is 5.55%.

Range Selected
Cost of equity 7.50% - 10.30% 8.90%
Tax rate 22.20% - 23.90% 23.05%
Cost of debt 4.50% - 6.60% 5.55%
WACC 7.0% - 9.6% 8.3%
WACC

DIM.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.77 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.30%
Tax rate 22.20% 23.90%
Debt/Equity ratio 0.14 0.14
Cost of debt 4.50% 6.60%
After-tax WACC 7.0% 9.6%
Selected WACC 8.3%

DIM.PA'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 DIM.PA:

cost_of_equity (8.90%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.77) + 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.