The WACC of Nanorepro AG (NN6.DE) is 7.4%.
| Range | Selected | |
| Cost of equity | 5.90% - 8.90% | 7.40% |
| Tax rate | 7.30% - 16.60% | 11.95% |
| Cost of debt | 4.00% - 4.50% | 4.25% |
| WACC | 5.9% - 8.9% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 1.1% | 1.6% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 1.01 | 1.19 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.90% | 8.90% |
| Tax rate | 7.30% | 16.60% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.00% | 4.50% |
| After-tax WACC | 5.9% | 8.9% |
| Selected WACC | 7.4% | |
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 NN6.DE:
cost_of_equity (7.40%) = risk_free_rate (1.35%) + equity_risk_premium (5.20%) * adjusted_beta (1.01) + 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.