SGF.DE WACC - Weighted Average Cost of Capital
The WACC of SGT German Private Equity GmbH & Co KGaA (SGF.DE) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.0% - 8.2% | 6.6% |
| Tax rate | 9.2% - 11.2% | 10.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.8% - 7.7% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.46 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 8.2% |
| Tax rate | 9.2% | 11.2% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.8% | 7.7% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SGF.DE | SGT German Private Equity GmbH & Co KGaA | 0.15 | 0.68 | 0.6 |
| AMUN.PA | Amundi SA | 1.34 | 1.34 | 0.61 |
| CNLCAP.AT | CNL Capital EKES AIFM | 0.86 | 0.13 | 0.07 |
| GEQ.MI | Gequity SpA | 1.66 | 0.18 | 0.07 |
| MAFL.L | Mineral & Financial Investments Ltd | 0 | 0.24 | 0.24 |
| MWT.WA | M.W. Trade SA | 0.06 | 0.34 | 0.32 |
| NEWN.SW | New Value AG | 0.19 | 1.15 | 0.99 |
| QRS.WA | Quercus Towarzystwo Funduszy Inwestycyjnych SA | 0.01 | 0.51 | 0.5 |
| SPK.WA | Spark VC Alternatywna Spolka Inwestycyjna SA | 0 | 0.37 | 0.37 |
| Low | High | |
| Unlevered beta | 0.33 | 0.48 |
| Relevered beta | 0.19 | 0.63 |
| Adjusted relevered beta | 0.46 | 0.75 |
SGF.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 SGF.DE:
cost_of_equity (6.60%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.46) + 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.