T3T1.DE
Seven Principles AG
Price:  
5.10 
EUR
Volume:  
971.00
Germany | IT Services
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T3T1.DE WACC - Weighted Average Cost of Capital

The WACC of Seven Principles AG (T3T1.DE) is 6.3%.

The Cost of Equity of Seven Principles AG (T3T1.DE) is 6.30%.
The Cost of Debt of Seven Principles AG (T3T1.DE) is 4.25%.

Range Selected
Cost of equity 5.30% - 7.30% 6.30%
Tax rate 21.50% - 38.20% 29.85%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.3% - 7.3% 6.3%
WACC

T3T1.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.5 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.30% 7.30%
Tax rate 21.50% 38.20%
Debt/Equity ratio 0 0
Cost of debt 4.00% 4.50%
After-tax WACC 5.3% 7.3%
Selected WACC 6.3%

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 (6.30%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.5) + 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.