GYC.DE WACC - Weighted Average Cost of Capital

The WACC of Grand City Properties SA (GYC.DE) is 4.6%.

The Cost of Equity of Grand City Properties SA (GYC.DE) is 7.45%.

The Cost of Debt of Grand City Properties SA (GYC.DE) is 4.25%.

	Range	Selected
Cost of equity	5.60% - 9.30%	7.45%
Tax rate	18.50% - 20.30%	19.40%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.0% - 5.3%	4.6%

WACC

GYC.DE WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.56	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	9.30%

Tax rate	18.50%	20.30%
Debt/Equity ratio	2.35	2.35
Cost of debt	4.00%	4.50%

After-tax WACC	4.0%	5.3%


Selected WACC	4.6%

GYC.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 GYC.DE:

cost_of_equity (7.45%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.