T3T1.DE WACC - Weighted Average Cost of Capital
The WACC of Seven Principles AG (T3T1.DE) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.2% | 6.25% |
| Tax rate | 21.5% - 38.2% | 29.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 7.2% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.49 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.2% |
| Tax rate | 21.5% | 38.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 7.2% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| T3T1.DE | Seven Principles AG | 0 | -0.13 | -0.13 |
| ALEMK.BR | Emakina Group SA | 0.14 | 1.49 | 1.35 |
| B3.ST | B3 Consulting Group AB (publ) | 0.62 | 0.52 | 0.36 |
| CTAC.AS | Ctac NV | 0.19 | 0.02 | 0.02 |
| GLINT.LS | Glintt Global Intelligent Technologies SA | 0.42 | 0.25 | 0.19 |
| MUN.PA | Micropole SA | 1.1 | 0.87 | 0.5 |
| OBS.DE | Orbis AG | 0.15 | -0.01 | -0.01 |
| PREV B.ST | Prevas AB | 0.33 | 0.38 | 0.31 |
| SIILI.HE | Siili Solutions Oyj | 0.25 | 1.08 | 0.92 |
| SPACE.AT | Space Hellas SA | 2.43 | 0.75 | 0.28 |
| Low | High | |
| Unlevered beta | 0.24 | 0.33 |
| Relevered beta | 0.24 | 0.33 |
| Adjusted relevered beta | 0.49 | 0.55 |
T3T1.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 T3T1.DE:
cost_of_equity (6.25%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.49) + 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.