EQS.DE WACC - Weighted Average Cost of Capital
The WACC of EQS Group AG (EQS.DE) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.4% | 6.35% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.5% - 7.0% | 6.25% |
| WACC | 5.1% - 7.2% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.52 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.4% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 5.5% | 7.0% |
| After-tax WACC | 5.1% | 7.2% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EQS.DE | EQS Group AG | 0.1 | 1.76 | 1.65 |
| ACSO.L | accesso Technology Group PLC | 0.06 | 0.81 | 0.78 |
| DEV.L | Dev Clever Holdings PLC | 0 | -1.1 | -1.1 |
| EXSY.MI | Expert System SpA | 0.24 | 0.71 | 0.61 |
| FPIP.ST | FormPipe Software AB | 0.02 | 0.07 | 0.07 |
| IGE.PA | IGE + XAO SA | 0.01 | 0.31 | 0.31 |
| OMG.L | Oxford Metrics PLC | 0.05 | 0.86 | 0.83 |
| SOLTEQ.HE | Solteq Oyj | 1.99 | 0.31 | 0.13 |
| TEM1V.HE | Tecnotree Oyj | 0.07 | 1.33 | 1.26 |
| ZOO.L | Zoo Digital Group PLC | 0.45 | 1.46 | 1.11 |
| Low | High | |
| Unlevered beta | 0.49 | 0.8 |
| Relevered beta | 0.28 | 0.43 |
| Adjusted relevered beta | 0.52 | 0.62 |
EQS.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 EQS.DE:
cost_of_equity (6.35%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.52) + 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.