DIM.PA WACC - Weighted Average Cost of Capital

The WACC of Sartorius Stedim Biotech SA (DIM.PA) is 9.0%.

The Cost of Equity of Sartorius Stedim Biotech SA (DIM.PA) is 9.85%.

The Cost of Debt of Sartorius Stedim Biotech SA (DIM.PA) is 5.35%.

	Range	Selected
Cost of equity	8.50% - 11.20%	9.85%
Tax rate	22.20% - 24.80%	23.50%
Cost of debt	5.20% - 5.50%	5.35%
WACC	7.8% - 10.2%	9.0%

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	0.95	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.20%

Tax rate	22.20%	24.80%
Debt/Equity ratio	0.18	0.18
Cost of debt	5.20%	5.50%

After-tax WACC	7.8%	10.2%


Selected WACC	9.0%

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 (9.85%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.95) + 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.