TIE.AS WACC - Weighted Average Cost of Capital
The WACC of TIE Kinetix NV (TIE.AS) is 5.8%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.8% | 5.85% |
| Tax rate | 25.0% - 25.3% | 25.15% |
| Cost of debt | 4.4% - 7.0% | 5.7% |
| WACC | 4.9% - 6.8% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.28 | 0.37 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 4.9% | 6.8% |
| Tax rate | 25.0% | 25.3% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.4% | 7.0% |
| After-tax WACC | 4.9% | 6.8% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TIE.AS | TIE Kinetix NV | 0.01 | 1.07 | 1.06 |
| ALNXT.PA | Nextedia SA | 0.39 | 0.49 | 0.38 |
| BINERO.ST | Binero Group AB (publ) | 0.1 | 0.09 | 0.09 |
| BKS.L | Beeks Financial Cloud Group PLC | 0.02 | 1.55 | 1.53 |
| CLCO.L | Cloudcoco Group PLC | 3.93 | 5.65 | 1.43 |
| DHH.MI | DHH SpA | 0.16 | 0 | 0 |
| FRAM B.ST | Fram Skandinavien AB (publ) | 0 | 0.58 | 0.58 |
| NC5A.DE | NorCom Information Technology AG | 0.21 | -0.34 | -0.3 |
| PRM.MI | PRISMI SpA | 2.6 | -0.05 | -0.02 |
| RTC.DE | Realtech AG | 0.07 | 1.05 | 0.99 |
| Low | High | |
| Unlevered beta | 0.26 | 0.74 |
| Relevered beta | -0.07 | 0.06 |
| Adjusted relevered beta | 0.28 | 0.37 |
TIE.AS'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 TIE.AS:
cost_of_equity (5.85%) = risk_free_rate (3.15%) + equity_risk_premium (6.00%) * adjusted_beta (0.28) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.