SEM.VI WACC - Weighted Average Cost of Capital

The WACC of Semperit AG Holding (SEM.VI) is 7.3%.

The Cost of Equity of Semperit AG Holding (SEM.VI) is 11.30%.

The Cost of Debt of Semperit AG Holding (SEM.VI) is 4.90%.

	Range	Selected
Cost of equity	9.50% - 13.10%	11.30%
Tax rate	21.50% - 34.30%	27.90%
Cost of debt	4.50% - 5.30%	4.90%
WACC	6.4% - 8.2%	7.3%

WACC

SEM.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	1.17	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	13.10%

Tax rate	21.50%	34.30%
Debt/Equity ratio	1.06	1.06
Cost of debt	4.50%	5.30%

After-tax WACC	6.4%	8.2%


Selected WACC	7.3%

SEM.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 SEM.VI:

cost_of_equity (11.30%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (1.17) + 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.