SAX.DE WACC - Weighted Average Cost of Capital
The WACC of Stroeer SE & Co KGaA (SAX.DE) is 6.8%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.3% | 9.1% |
| Tax rate | 25.9% - 28.7% | 27.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.0% - 7.6% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.01 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.3% |
| Tax rate | 25.9% | 28.7% |
| Debt/Equity ratio | 0.62 | 0.62 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.0% | 7.6% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SAX.DE | Stroeer SE & Co KGaA | 0.62 | 1.16 | 0.8 |
| ASCL.L | Ascential PLC | 0.29 | 1.72 | 1.43 |
| CAI.MI | Cairo Communication SpA | 0.51 | 0.55 | 0.4 |
| DEC.PA | JCDecaux SA | 1.36 | 1.11 | 0.56 |
| FOUR.L | 4imprint Group PLC | 0 | 1.67 | 1.66 |
| IPS.PA | Ipsos SA | 0.26 | 0.82 | 0.69 |
| NFC.L | Next Fifteen Communications Group PLC | 0.11 | 1.86 | 1.72 |
| SAA.L | M&C Saatchi PLC | 0.28 | 0.17 | 0.14 |
| SFOR.L | S4 Capital PLC | 2.16 | 1.89 | 0.74 |
| YOU.L | YouGov PLC | 0.64 | 1.03 | 0.7 |
| Low | High | |
| Unlevered beta | 0.7 | 0.76 |
| Relevered beta | 1.01 | 1.1 |
| Adjusted relevered beta | 1.01 | 1.07 |
SAX.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 SAX.DE:
cost_of_equity (9.10%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * 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.