WCH.DE
Wacker Chemie AG
Price:  
65.80 
EUR
Volume:  
230,345.00
Germany | Chemicals
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WCH.DE WACC - Weighted Average Cost of Capital

The WACC of Wacker Chemie AG (WCH.DE) is 7.1%.

The Cost of Equity of Wacker Chemie AG (WCH.DE) is 9.00%.
The Cost of Debt of Wacker Chemie AG (WCH.DE) is 4.25%.

Range Selected
Cost of equity 7.50% - 10.50% 9.00%
Tax rate 12.10% - 17.50% 14.80%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.1% - 8.1% 7.1%
WACC

WCH.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.92 1.11
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.50%
Tax rate 12.10% 17.50%
Debt/Equity ratio 0.55 0.55
Cost of debt 4.00% 4.50%
After-tax WACC 6.1% 8.1%
Selected WACC 7.1%

WCH.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 WCH.DE:

cost_of_equity (9.00%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.92) + 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.