SHL.DE WACC - Weighted Average Cost of Capital
The WACC of Siemens Healthineers AG (SHL.DE) is 7.2%.
| Range | Selected | |
| Cost of equity | 7.1% - 9.8% | 8.45% |
| Tax rate | 24.9% - 26.9% | 25.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.1% - 8.2% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.85 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 9.8% |
| Tax rate | 24.9% | 26.9% |
| Debt/Equity ratio | 0.31 | 0.31 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.1% | 8.2% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SHL.DE | Siemens Healthineers AG | 0.31 | 1.16 | 0.95 |
| BIM.PA | Biomerieux SA | 0.04 | 0.53 | 0.52 |
| GETI B.ST | Getinge AB | 0.23 | 0.69 | 0.59 |
| GN.CO | GN Store Nord A/S | 0.79 | 0.27 | 0.17 |
| OSSR.CO | Ossur hf | 0.25 | 0.22 | 0.18 |
| PHIA.AS | Koninklijke Philips NV | 0.39 | 0.84 | 0.65 |
| SN.L | Smith & Nephew PLC | 0.27 | 1.03 | 0.86 |
| SOON.SW | Sonova Holding AG | 0.11 | 0.81 | 0.75 |
| SRT.DE | Sartorius AG | 0.35 | 1.45 | 1.15 |
| STMN.SW | Straumann Holding AG | 0.02 | 1.37 | 1.34 |
| Low | High | |
| Unlevered beta | 0.63 | 0.79 |
| Relevered beta | 0.78 | 0.97 |
| Adjusted relevered beta | 0.85 | 0.98 |
SHL.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 SHL.DE:
cost_of_equity (8.45%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.85) + 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.