EGNETY.CO WACC - Weighted Average Cost of Capital

The WACC of EgnsINVEST Ejendomme Tyskland A/S (EGNETY.CO) is 6.2%.

The Cost of Equity of EgnsINVEST Ejendomme Tyskland A/S (EGNETY.CO) is 5.85%.

The Cost of Debt of EgnsINVEST Ejendomme Tyskland A/S (EGNETY.CO) is 7.60%.

	Range	Selected
Cost of equity	5.00% - 6.70%	5.85%
Tax rate	16.30% - 16.60%	16.45%
Cost of debt	4.00% - 11.20%	7.60%
WACC	3.8% - 8.6%	6.2%

WACC

EGNETY.CO WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.44	0.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.00%	6.70%

Tax rate	16.30%	16.60%
Debt/Equity ratio	2.39	2.39
Cost of debt	4.00%	11.20%

After-tax WACC	3.8%	8.6%


Selected WACC	6.2%

EGNETY.CO'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 EGNETY.CO:

cost_of_equity (5.85%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.44) + 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.