M12.DE WACC - Weighted Average Cost of Capital

The WACC of M1 Kliniken AG (M12.DE) is 6.6%.

The Cost of Equity of M1 Kliniken AG (M12.DE) is 6.85%.

The Cost of Debt of M1 Kliniken AG (M12.DE) is 4.25%.

	Range	Selected
Cost of equity	5.80% - 7.90%	6.85%
Tax rate	27.30% - 29.80%	28.55%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.6% - 7.5%	6.6%

WACC

M12.DE WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.59	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	7.90%

Tax rate	27.30%	29.80%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.00%	4.50%

After-tax WACC	5.6%	7.5%


Selected WACC	6.6%

M12.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 M12.DE:

cost_of_equity (6.85%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.59) + 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.