FC9.DE WACC - Weighted Average Cost of Capital

The WACC of FCR Immobilien AG (FC9.DE) is 7.6%.

The Cost of Equity of FCR Immobilien AG (FC9.DE) is 7.25%.

The Cost of Debt of FCR Immobilien AG (FC9.DE) is 9.85%.

	Range	Selected
Cost of equity	6.00% - 8.50%	7.25%
Tax rate	15.70% - 17.40%	16.55%
Cost of debt	5.90% - 13.80%	9.85%
WACC	5.6% - 9.5%	7.6%

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	0.63	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	8.50%

Tax rate	15.70%	17.40%
Debt/Equity ratio	0.56	0.56
Cost of debt	5.90%	13.80%

After-tax WACC	5.6%	9.5%


Selected WACC	7.6%

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 (7.25%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.63) + 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.