VIH1.DE WACC - Weighted Average Cost of Capital
The WACC of VIB Vermoegen AG (VIH1.DE) is 6.3%.
| Range | Selected | |
| Cost of equity | 4.7% - 7.0% | 5.85% |
| Tax rate | 15.1% - 16.2% | 15.65% |
| Cost of debt | 4.0% - 11.3% | 7.65% |
| WACC | 3.7% - 8.9% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.37 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 7.0% |
| Tax rate | 15.1% | 16.2% |
| Debt/Equity ratio | 3.54 | 3.54 |
| Cost of debt | 4.0% | 11.3% |
| After-tax WACC | 3.7% | 8.9% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VIH1.DE | VIB Vermoegen AG | 3.54 | 0.6 | 0.15 |
| ATEB.BR | Atenor SA | 4.32 | 0.07 | 0.01 |
| CORE A.ST | Corem Property Group AB | 4.42 | 0.27 | 0.06 |
| FREN.SW | Fundamenta Real Estate AG | 1.23 | 0.01 | 0 |
| GTY.DE | Gateway Real Estate AG | 6.55 | -0.27 | -0.04 |
| HEBA B.ST | HEBA Fastighets AB | 1.31 | 0.19 | 0.09 |
| HIAG.SW | HIAG Immobilien Holding AG | 0.71 | 0.26 | 0.16 |
| NP3.ST | NP3 Fastigheter AB | 0.77 | 0.43 | 0.26 |
| ORIA.PA | Fiducial Real Estate SA | 0.41 | -0.02 | -0.01 |
| STEF B.ST | Stendorren Fastigheter AB | 1.37 | 0.04 | 0.02 |
| Low | High | |
| Unlevered beta | 0.02 | 0.07 |
| Relevered beta | 0.06 | 0.28 |
| Adjusted relevered beta | 0.37 | 0.52 |
VIH1.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 VIH1.DE:
cost_of_equity (5.85%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.