V3S.DE WACC - Weighted Average Cost of Capital
The WACC of Vectron Systems AG (V3S.DE) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.5% | 6.3% |
| Tax rate | 24.4% - 27.2% | 25.8% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.6% - 7.0% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.45 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.5% |
| Tax rate | 24.4% | 27.2% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.6% | 7.0% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| V3S.DE | Vectron Systems AG | 0.26 | 0.59 | 0.49 |
| ALM.PA | Alpha MOS SA | 0.1 | -1.1 | -1.02 |
| APN.WA | Aplisens SA | 0.89 | 0.02 | 0.01 |
| FIRE.ST | Firefly AB | 0 | 0.42 | 0.42 |
| GEA.PA | Gea Grenobloise Electronique Automatisme SA | 0 | 0.17 | 0.17 |
| OTAQ.L | OTAQ PLC | 0.97 | -0.77 | -0.45 |
| PIP.L | Pipehawk PLC | 11.03 | 0.08 | 0.01 |
| SON.WA | Sonel SA | 0.01 | 0.59 | 0.58 |
| VGO.WA | Vigo System SA | 0.11 | 0.65 | 0.6 |
| WPHO.L | Windar Photonics PLC | 0.03 | -0.36 | -0.35 |
| Low | High | |
| Unlevered beta | 0.01 | 0.27 |
| Relevered beta | 0.18 | 0.4 |
| Adjusted relevered beta | 0.45 | 0.6 |
V3S.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 V3S.DE:
cost_of_equity (6.30%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.45) + 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.