V3V.DE WACC - Weighted Average Cost of Capital

The WACC of Vita 34 AG (V3V.DE) is 7.3%.

The Cost of Equity of Vita 34 AG (V3V.DE) is 6.85%.

The Cost of Debt of Vita 34 AG (V3V.DE) is 13.40%.

	Range	Selected
Cost of equity	5.40% - 8.30%	6.85%
Tax rate	19.20% - 34.90%	27.05%
Cost of debt	4.00% - 22.80%	13.40%
WACC	4.9% - 9.8%	7.3%

WACC

V3V.DE WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.51	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	8.30%

Tax rate	19.20%	34.90%
Debt/Equity ratio	0.31	0.31
Cost of debt	4.00%	22.80%

After-tax WACC	4.9%	9.8%


Selected WACC	7.3%

V3V.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 V3V.DE:

cost_of_equity (6.85%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.