ENR.DE
Siemens Energy AG
Price:  
81.70 
EUR
Volume:  
5,070,430.00
Germany | Electrical Equipment
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ENR.DE WACC - Weighted Average Cost of Capital

The WACC of Siemens Energy AG (ENR.DE) is 8.5%.

The Cost of Equity of Siemens Energy AG (ENR.DE) is 8.80%.
The Cost of Debt of Siemens Energy AG (ENR.DE) is 5.55%.

Range Selected
Cost of equity 7.50% - 10.10% 8.80%
Tax rate 19.40% - 23.00% 21.20%
Cost of debt 5.20% - 5.90% 5.55%
WACC 7.3% - 9.8% 8.5%
WACC

ENR.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.92 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.10%
Tax rate 19.40% 23.00%
Debt/Equity ratio 0.06 0.06
Cost of debt 5.20% 5.90%
After-tax WACC 7.3% 9.8%
Selected WACC 8.5%

ENR.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 ENR.DE:

cost_of_equity (8.80%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * 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.