VOS.DE WACC - Weighted Average Cost of Capital
The WACC of Vossloh AG (VOS.DE) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.1% | 7.1% |
| Tax rate | 19.4% - 25.6% | 22.5% |
| Cost of debt | 4.0% - 5.0% | 4.5% |
| WACC | 5.7% - 7.5% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.66 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.1% |
| Tax rate | 19.4% | 25.6% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 4.0% | 5.0% |
| After-tax WACC | 5.7% | 7.5% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VOS.DE | Vossloh AG | 0.17 | 0.84 | 0.74 |
| CARR.MI | Carraro SpA | 2.53 | 1.6 | 0.53 |
| FMF.WA | Famur SA | 0.55 | 0.95 | 0.66 |
| HLDX.ST | Haldex AB | 0.43 | 0.54 | 0.4 |
| JST.DE | JOST Werke AG | 0.4 | 0.96 | 0.72 |
| PIG.PA | Haulotte Group SA | 3.91 | 0.99 | 0.24 |
| ROS.VI | Rosenbauer International AG | 1.13 | 0.92 | 0.48 |
| SF3.DE | STS Group AG | 3.21 | 0.52 | 0.15 |
| TLGO.MC | Talgo SA | 1.19 | 0.88 | 0.45 |
| WLT.WA | Wielton SA | 1.26 | 0.57 | 0.29 |
| Low | High | |
| Unlevered beta | 0.43 | 0.5 |
| Relevered beta | 0.49 | 0.57 |
| Adjusted relevered beta | 0.66 | 0.71 |
VOS.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 VOS.DE:
cost_of_equity (7.10%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.66) + 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.