RAT.VI WACC - Weighted Average Cost of Capital
The WACC of Rath AG (RAT.VI) is 10.3%.
| Range | Selected | |
| Cost of equity | 8.8% - 11.3% | 10.05% |
| Tax rate | 12.4% - 23.4% | 17.9% |
| Cost of debt | 4.0% - 22.8% | 13.4% |
| WACC | 5.8% - 14.8% | 10.3% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 1.06 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 11.3% |
| Tax rate | 12.4% | 23.4% |
| Debt/Equity ratio | 1.28 | 1.28 |
| Cost of debt | 4.0% | 22.8% |
| After-tax WACC | 5.8% | 14.8% |
| Selected WACC | 10.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RAT.VI | Rath AG | 1.28 | 0.1 | 0.05 |
| BSOKE.IS | Batisoke Soke Cimento Sanayii TAS | 1.16 | 1.07 | 0.55 |
| BTCIM.IS | Baticim Bati Anadolu Cimento Sanayii AS | 0.68 | 1.17 | 0.75 |
| BUCIM.IS | Bursa Cimento Fabrikasi AS | 0.05 | 1.22 | 1.18 |
| GOLTS.IS | Goltas Goller Bolgesi Cimento Sanayi ve Ticaret AS | 0.76 | 1.39 | 0.86 |
| LBT.WA | Libet SA | 0.15 | 0.44 | 0.39 |
| MBH.L | Michelmersh Brick Holdings PLC | 0.02 | 0.52 | 0.51 |
| RPC.WA | Zaklady Magnezytowe Ropczyce SA | 0.58 | 0.07 | 0.05 |
| SRC.L | Sigmaroc PLC | 0.54 | 0.78 | 0.54 |
| STCM.L | Steppe Cement Ltd | 0.11 | 0.7 | 0.64 |
| Low | High | |
| Unlevered beta | 0.53 | 0.59 |
| Relevered beta | 1.09 | 1.19 |
| Adjusted relevered beta | 1.06 | 1.13 |
RAT.VI'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 RAT.VI:
cost_of_equity (10.05%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (1.06) + 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.