SBS.DE
Stratec SE
Price:  
26.85 
EUR
Volume:  
2,560
Germany | Health Care Equipment & Supplies

SBS.DE WACC - Weighted Average Cost of Capital

The WACC of Stratec SE (SBS.DE) is 7.8%.

The Cost of Equity of Stratec SE (SBS.DE) is 9.6%.
The Cost of Debt of Stratec SE (SBS.DE) is 4.25%.

RangeSelected
Cost of equity7.7% - 11.5%9.6%
Tax rate21.0% - 26.0%23.5%
Cost of debt4.0% - 4.5%4.25%
WACC6.4% - 9.2%7.8%
WACC

SBS.DE WACC calculation

CategoryLowHigh
Long-term bond rate2.8%3.3%
Equity market risk premium5.1%6.1%
Adjusted beta0.961.26
Additional risk adjustments0.0%0.5%
Cost of equity7.7%11.5%
Tax rate21.0%26.0%
Debt/Equity ratio
0.40.4
Cost of debt4.0%4.5%
After-tax WACC6.4%9.2%
Selected WACC7.8%

SBS.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 SBS.DE:

cost_of_equity (9.60%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.96) + 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.