YSN.DE WACC - Weighted Average Cost of Capital

The WACC of Secunet Security Networks AG (YSN.DE) is 7.8%.

The Cost of Equity of Secunet Security Networks AG (YSN.DE) is 7.90%.

The Cost of Debt of Secunet Security Networks AG (YSN.DE) is 4.25%.

	Range	Selected
Cost of equity	6.60% - 9.20%	7.90%
Tax rate	32.20% - 32.70%	32.45%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.5% - 9.0%	7.8%

WACC

YSN.DE WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.74	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	9.20%

Tax rate	32.20%	32.70%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	4.50%

After-tax WACC	6.5%	9.0%


Selected WACC	7.8%

YSN.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 YSN.DE:

cost_of_equity (7.90%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.74) + 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.