ROS.VI WACC - Weighted Average Cost of Capital

The WACC of Rosenbauer International AG (ROS.VI) is 6.9%.

The Cost of Equity of Rosenbauer International AG (ROS.VI) is 7.60%.

The Cost of Debt of Rosenbauer International AG (ROS.VI) is 8.15%.

	Range	Selected
Cost of equity	6.20% - 9.00%	7.60%
Tax rate	22.40% - 24.70%	23.55%
Cost of debt	5.00% - 11.30%	8.15%
WACC	5.0% - 8.7%	6.9%

WACC

ROS.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.61	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	9.00%

Tax rate	22.40%	24.70%
Debt/Equity ratio	1.15	1.15
Cost of debt	5.00%	11.30%

After-tax WACC	5.0%	8.7%


Selected WACC	6.9%

ROS.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 ROS.VI:

cost_of_equity (7.60%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.61) + 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.