EFF.DE WACC - Weighted Average Cost of Capital
The WACC of Deutsche Effecten und Wechsel Beteiligungsgesellschaft AG (EFF.DE) is 6.5%.
| Range | Selected | |
| Cost of equity | 6.4% - 10.2% | 8.3% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 7.7% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.92 | 1.25 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 10.2% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.6 | 0.6 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 7.7% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EFF.DE | Deutsche Effecten und Wechsel Beteiligungsgesellschaft AG | 0.6 | 0 | 0 |
| CLP.L | Clear Leisure PLC | 0.33 | 1.97 | 1.6 |
| DM.MI | Digital Magics SpA | 0.14 | 0.2 | 0.18 |
| FLEXD.LS | Flexdeal SIMFE SA | 0.08 | -0.09 | -0.08 |
| GRNYO.IS | Garanti Yatirim Ortakligi AS | 0.01 | 0.69 | 0.68 |
| JADE.L | Jade Road Investments Ltd | 0.26 | 1.86 | 1.58 |
| LOUD.HE | Loudspring Plc | 0.5 | 1.06 | 0.79 |
| LVEN.MI | LVenture Group SpA | 0.37 | 0.15 | 0.12 |
| MARKA.IS | Marka Yatirim Holding AS | 0 | 1.62 | 1.62 |
| VKFYO.IS | Vakif Menkul Kiymet Yatirim Ortakligi AS | 0 | 0.34 | 0.34 |
| Low | High | |
| Unlevered beta | 0.27 | 0.72 |
| Relevered beta | 0.88 | 1.37 |
| Adjusted relevered beta | 0.92 | 1.25 |
EFF.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 EFF.DE:
cost_of_equity (8.30%) = risk_free_rate (2.25%) + equity_risk_premium (5.20%) * adjusted_beta (0.92) + 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.