DOC.VI WACC - Weighted Average Cost of Capital
The WACC of DO & CO AG (DOC.VI) is 7.0%.
| Range | Selected | |
| Cost of equity | 6.4% - 9.6% | 8% |
| Tax rate | 23.3% - 27.7% | 25.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.7% - 8.3% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.64 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 9.6% |
| Tax rate | 23.3% | 27.7% |
| Debt/Equity ratio | 0.27 | 0.27 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.7% | 8.3% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DOC.VI | DO & CO AG | 0.27 | 1.47 | 1.23 |
| CLG.L | Clipper Logistics PLC | 0.27 | 2.02 | 1.69 |
| COOR.ST | Coor Service Management Holding AB | 0.73 | 0.43 | 0.28 |
| CTRG.PA | Catering International & Services SA | 0.4 | 1.2 | 0.93 |
| CWC.DE | Cewe Stiftung & Co KGaA | 0.06 | 0.31 | 0.3 |
| GLO.PA | GL Events SA | 2.27 | 0.87 | 0.33 |
| JSG.L | Johnson Service Group PLC | 0.22 | 1.18 | 1.01 |
| MER.L | Mears Group PLC | 0.89 | 0.7 | 0.42 |
| PAY.L | PayPoint plc | 0.21 | 0.6 | 0.52 |
| RST.L | Restore PLC | 0.7 | 0.42 | 0.28 |
| Low | High | |
| Unlevered beta | 0.39 | 0.68 |
| Relevered beta | 0.46 | 0.82 |
| Adjusted relevered beta | 0.64 | 0.88 |
DOC.VI'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 DOC.VI:
cost_of_equity (8.00%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.64) + 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.