FC9.DE
FCR Immobilien AG
Price:  
12.80 
EUR
Volume:  
644.00
Germany | Real Estate Management & Development
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FC9.DE WACC - Weighted Average Cost of Capital

The WACC of FCR Immobilien AG (FC9.DE) is 7.0%.

The Cost of Equity of FCR Immobilien AG (FC9.DE) is 7.35%.
The Cost of Debt of FCR Immobilien AG (FC9.DE) is 7.80%.

Range Selected
Cost of equity 6.30% - 8.40% 7.35%
Tax rate 17.60% - 18.20% 17.90%
Cost of debt 5.90% - 9.70% 7.80%
WACC 5.8% - 8.2% 7.0%
WACC

FC9.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.7 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.40%
Tax rate 17.60% 18.20%
Debt/Equity ratio 0.63 0.63
Cost of debt 5.90% 9.70%
After-tax WACC 5.8% 8.2%
Selected WACC 7.0%

FC9.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 FC9.DE:

cost_of_equity (7.35%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.7) + 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.