SANT.DE WACC - Weighted Average Cost of Capital
The WACC of S&T AG (SANT.DE) is 7.0%.
| Range | Selected | |
| Cost of equity | 7.0% - 9.7% | 8.35% |
| Tax rate | 9.9% - 11.6% | 10.75% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.0% - 8.0% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 1.05 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 9.7% |
| Tax rate | 9.9% | 11.6% |
| Debt/Equity ratio | 0.42 | 0.42 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.0% | 8.0% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SANT.DE | S&T AG | 0.42 | 1.1 | 0.8 |
| ADN1.DE | adesso SE | 0.53 | 1.33 | 0.9 |
| COK.DE | Cancom SE | 0.18 | 0.79 | 0.68 |
| DOM.MC | Global Dominion Access SA | 0.96 | 0.75 | 0.4 |
| DVT.PA | Devoteam SA | 0.06 | 0.74 | 0.7 |
| NA9.DE | Nagarro SE | 0.48 | 0.7 | 0.49 |
| NRO.PA | Neurones SA | 0.04 | 0.43 | 0.42 |
| REY.MI | Reply SpA | 0.04 | 0.78 | 0.75 |
| SII.PA | Societe Pour l Informatique Industrielle SA | 0.07 | 0.39 | 0.37 |
| WAVE.PA | Wavestone SA | 0.06 | 0.95 | 0.91 |
| Low | High | |
| Unlevered beta | 0.6 | 0.72 |
| Relevered beta | 1.07 | 1.25 |
| Adjusted relevered beta | 1.05 | 1.17 |
SANT.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 SANT.DE:
cost_of_equity (8.35%) = risk_free_rate (2.25%) + equity_risk_premium (5.20%) * adjusted_beta (1.05) + 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.