TGT.DE
11 88 0 Solutions AG
Price:  
0.73 
EUR
Volume:  
2,389.00
Germany | Commercial Services & Supplies
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TGT.DE WACC - Weighted Average Cost of Capital

The WACC of 11 88 0 Solutions AG (TGT.DE) is 6.2%.

The Cost of Equity of 11 88 0 Solutions AG (TGT.DE) is 6.60%.
The Cost of Debt of 11 88 0 Solutions AG (TGT.DE) is 6.10%.

Range Selected
Cost of equity 5.20% - 8.00% 6.60%
Tax rate 27.10% - 32.40% 29.75%
Cost of debt 5.20% - 7.00% 6.10%
WACC 4.9% - 7.4% 6.2%
WACC

TGT.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.47 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.20% 8.00%
Tax rate 27.10% 32.40%
Debt/Equity ratio 0.21 0.21
Cost of debt 5.20% 7.00%
After-tax WACC 4.9% 7.4%
Selected WACC 6.2%

TGT.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 TGT.DE:

cost_of_equity (6.60%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.