VIG.VI WACC - Weighted Average Cost of Capital

The WACC of Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG.VI) is 6.8%.

The Cost of Equity of Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG.VI) is 7.85%.

The Cost of Debt of Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG.VI) is 5.00%.

	Range	Selected
Cost of equity	6.80% - 8.90%	7.85%
Tax rate	24.30% - 24.80%	24.55%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.1% - 7.6%	6.8%

WACC

VIG.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.71	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	8.90%

Tax rate	24.30%	24.80%
Debt/Equity ratio	0.33	0.33
Cost of debt	5.00%	5.00%

After-tax WACC	6.1%	7.6%


Selected WACC	6.8%

VIG.VI'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 VIG.VI:

cost_of_equity (7.85%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.71) + 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.