TEG.DE
TAG Immobilien AG
Price:  
14.51 
EUR
Volume:  
242,696
Germany | Real Estate Management & Development

TEG.DE WACC - Weighted Average Cost of Capital

The WACC of TAG Immobilien AG (TEG.DE) is 5.0%.

The Cost of Equity of TAG Immobilien AG (TEG.DE) is 6.35%.
The Cost of Debt of TAG Immobilien AG (TEG.DE) is 4.95%.

RangeSelected
Cost of equity5.5% - 7.2%6.35%
Tax rate17.2% - 18.4%17.8%
Cost of debt4.0% - 5.9%4.95%
WACC4.2% - 5.8%5.0%
WACC

TEG.DE WACC calculation

CategoryLowHigh
Long-term bond rate2.8%3.3%
Equity market risk premium5.1%6.1%
Adjusted beta0.530.57
Additional risk adjustments0.0%0.5%
Cost of equity5.5%7.2%
Tax rate17.2%18.4%
Debt/Equity ratio
1.481.48
Cost of debt4.0%5.9%
After-tax WACC4.2%5.8%
Selected WACC5.0%

TEG.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 TEG.DE:

cost_of_equity (6.35%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.53) + 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.