TGHN.DE WACC - Weighted Average Cost of Capital

The WACC of Logwin AG SA (TGHN.DE) is 7.5%.

The Cost of Equity of Logwin AG SA (TGHN.DE) is 7.80%.

The Cost of Debt of Logwin AG SA (TGHN.DE) is 4.70%.

	Range	Selected
Cost of equity	6.60% - 9.00%	7.80%
Tax rate	27.70% - 28.00%	27.85%
Cost of debt	4.00% - 5.40%	4.70%
WACC	6.3% - 8.7%	7.5%

WACC

TGHN.DE WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.74	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	9.00%

Tax rate	27.70%	28.00%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.00%	5.40%

After-tax WACC	6.3%	8.7%


Selected WACC	7.5%

TGHN.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 TGHN.DE:

cost_of_equity (7.80%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.74) + 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.