MBB.DE
MBB SE
Price:  
157.60 
EUR
Volume:  
5,035.00
Germany | Industrial Conglomerates
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MBB.DE WACC - Weighted Average Cost of Capital

The WACC of MBB SE (MBB.DE) is 6.7%.

The Cost of Equity of MBB SE (MBB.DE) is 7.10%.
The Cost of Debt of MBB SE (MBB.DE) is 4.30%.

Range Selected
Cost of equity 6.10% - 8.10% 7.10%
Tax rate 39.50% - 47.90% 43.70%
Cost of debt 4.00% - 4.60% 4.30%
WACC 5.8% - 7.6% 6.7%
WACC

MBB.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.66 0.71
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 8.10%
Tax rate 39.50% 47.90%
Debt/Equity ratio 0.11 0.11
Cost of debt 4.00% 4.60%
After-tax WACC 5.8% 7.6%
Selected WACC 6.7%

MBB.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 MBB.DE:

cost_of_equity (7.10%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.66) + 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.