WSO1.DE
Wallstreet online AG
Price:  
8.93 
EUR
Volume:  
10,950.00
Germany | Interactive Media & Services
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WSO1.DE WACC - Weighted Average Cost of Capital

The WACC of Wallstreet online AG (WSO1.DE) is 6.6%.

The Cost of Equity of Wallstreet online AG (WSO1.DE) is 6.85%.
The Cost of Debt of Wallstreet online AG (WSO1.DE) is 5.70%.

Range Selected
Cost of equity 5.20% - 8.50% 6.85%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 4.40% - 7.00% 5.70%
WACC 5.0% - 8.2% 6.6%
WACC

WSO1.DE WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 5.5% 6.5%
Adjusted beta 0.47 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.20% 8.50%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.11 0.11
Cost of debt 4.40% 7.00%
After-tax WACC 5.0% 8.2%
Selected WACC 6.6%

WSO1.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 WSO1.DE:

cost_of_equity (6.85%) = risk_free_rate (2.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.47) + 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.