Carl Zeiss Meditec AG (AFX.DE) WACC Analysis

As of June 15, 2025, Carl Zeiss Meditec AG (AFX.DE) carries a Weighted Average Cost of Capital (WACC) of 7.2%. WACC reflects the blended rate Carl Zeiss Meditec AG must pay to both equity and debt holders.

Within that, the cost of equity is 6.2%, the cost of debt is 4.0%, and the effective tax rate is 28.2%.

Breakdown of WACC Components

• Long-term bond rate: 2.8% – 3.3%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.66 – 0.87
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.1

What It Means for Investors

With a selected WACC of 7.2%, Carl Zeiss Meditec AG must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.