EBE.DE WACC - Weighted Average Cost of Capital
The WACC of aifinyo AG (EBE.DE) is 5.4%.
| Range | Selected | |
| Cost of equity | 4.9% - 7.7% | 6.3% |
| Tax rate | 40.8% - 47.7% | 44.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 6.4% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 1.1% | 1.6% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.8 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 7.7% |
| Tax rate | 40.8% | 47.7% |
| Debt/Equity ratio | 0.36 | 0.36 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 6.4% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EBE.DE | aifinyo AG | 0.36 | -0.16 | -0.13 |
| AIF.L | Acorn Income Fund Ltd | 0.35 | 1.18 | 0.99 |
| AJOT.L | AVI Japan Opportunity Trust PLC | 0.07 | 0.5 | 0.48 |
| BRLA.L | Blackrock Latin American Investment Trust PLC | 0.02 | 1.35 | 1.33 |
| EJFI.L | EJF Investments Ltd | 0.26 | 0.05 | 0.05 |
| GPM.L | Golden Prospect Precious Metals Ltd | 0.07 | 0.8 | 0.77 |
| MCT.L | Middlefield Canadian Income PCC | 0.23 | 0.65 | 0.58 |
| MPLF.L | Marble Point Loan Financing Ltd | 0.39 | -0.16 | -0.13 |
| RMDL.L | RM Secured Direct Lending PLC | 0.2 | 0.51 | 0.46 |
| ROMSB.OL | Romsdal Sparebank | 0.18 | -0.06 | -0.05 |
| Low | High | |
| Unlevered beta | 0.29 | 0.52 |
| Relevered beta | 0.7 | 0.97 |
| Adjusted relevered beta | 0.8 | 0.98 |
EBE.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 EBE.DE:
cost_of_equity (6.30%) = risk_free_rate (1.35%) + equity_risk_premium (5.20%) * adjusted_beta (0.8) + 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.