The WACC of The Social Chain AG (PU11.DE) is 8.4%.
| Range | Selected | |
| Cost of equity | 212.90% - 513.90% | 363.40% |
| Tax rate | 0.40% - 1.60% | 1.00% |
| Cost of debt | 7.00% - 7.00% | 7.00% |
| WACC | 7.8% - 8.9% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 38.25 | 78.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 212.90% | 513.90% |
| Tax rate | 0.40% | 1.60% |
| Debt/Equity ratio | 249.36 | 249.36 |
| Cost of debt | 7.00% | 7.00% |
| After-tax WACC | 7.8% | 8.9% |
| Selected WACC | 8.4% | |
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 PU11.DE:
cost_of_equity (363.40%) = risk_free_rate (2.85%) + equity_risk_premium (6.00%) * adjusted_beta (38.25) + 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.