STR.VI WACC - Weighted Average Cost of Capital

The WACC of STRABAG SE (STR.VI) is 7.6%.

The Cost of Equity of STRABAG SE (STR.VI) is 8.00%.

The Cost of Debt of STRABAG SE (STR.VI) is 4.25%.

	Range	Selected
Cost of equity	6.90% - 9.10%	8.00%
Tax rate	32.10% - 32.70%	32.40%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.5% - 8.6%	7.6%

WACC

STR.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.72	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	9.10%

Tax rate	32.10%	32.70%
Debt/Equity ratio	0.09	0.09
Cost of debt	4.00%	4.50%

After-tax WACC	6.5%	8.6%


Selected WACC	7.6%

STR.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 STR.VI:

cost_of_equity (8.00%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.72) + 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.