GXI.DE
Gerresheimer AG
Price:  
60.55 
EUR
Volume:  
221,481.00
Germany | Life Sciences Tools & Services
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GXI.DE WACC - Weighted Average Cost of Capital

The WACC of Gerresheimer AG (GXI.DE) is 6.3%.

The Cost of Equity of Gerresheimer AG (GXI.DE) is 8.20%.
The Cost of Debt of Gerresheimer AG (GXI.DE) is 4.50%.

Range Selected
Cost of equity 6.10% - 10.30% 8.20%
Tax rate 27.90% - 29.70% 28.80%
Cost of debt 4.00% - 5.00% 4.50%
WACC 4.9% - 7.7% 6.3%
WACC

GXI.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.64 1.07
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 10.30%
Tax rate 27.90% 29.70%
Debt/Equity ratio 0.61 0.61
Cost of debt 4.00% 5.00%
After-tax WACC 4.9% 7.7%
Selected WACC 6.3%

GXI.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 GXI.DE:

cost_of_equity (8.20%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.64) + 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.