KRN.DE WACC - Weighted Average Cost of Capital
The WACC of Krones AG (KRN.DE) is 5.5%.
| Range | Selected | |
| Cost of equity | 4.7% - 6.4% | 5.55% |
| Tax rate | 25.5% - 27.5% | 26.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.7% - 6.3% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.38 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 6.4% |
| Tax rate | 25.5% | 27.5% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.7% | 6.3% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KRN.DE | Krones AG | 0.03 | 1.33 | 1.3 |
| AZC.WA | Aztec International SA | 0.66 | 0.14 | 0.1 |
| BIOSK.AT | Unibios Holdings SA | 0.2 | 0.8 | 0.7 |
| BURVA.IS | Burcelik Vana Sanayi ve Ticaret AS | 0.06 | 0.09 | 0.08 |
| DPK1R.RG | Ditton Pievadkezu Rupnica AS | 4.39 | -0.29 | -0.07 |
| HED.VI | Maschinenfabrik Heid AG | 0.01 | -0.15 | -0.15 |
| HMSG.L | HMS Hydraulic Machines & Systems Group PLC | 3.57 | 0.14 | 0.04 |
| HPS.WA | Hydrapres SA | 0.92 | 0.09 | 0.05 |
| INSP.L | Inspirit Energy Holdings PLC | 0.63 | 1.25 | 0.86 |
| STRN.SW | Schlatter Industries AG | 0.22 | 0.26 | 0.23 |
| Low | High | |
| Unlevered beta | 0.07 | 0.15 |
| Relevered beta | 0.07 | 0.15 |
| Adjusted relevered beta | 0.38 | 0.43 |
KRN.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 KRN.DE:
cost_of_equity (5.55%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.38) + 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.