UET United Electronic Technology AG (CFC.DE) WACC Analysis

As of June 13, 2025, UET United Electronic Technology AG (CFC.DE) carries a Weighted Average Cost of Capital (WACC) of 10.9%. WACC reflects the blended rate UET United Electronic Technology AG must pay to both equity and debt holders.

Within that, the cost of equity is 6.1%, the cost of debt is 7.0%, and the effective tax rate is 30.0%.

Breakdown of WACC Components

• Long-term bond rate: 2.8% – 3.3%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.64 – 0.81
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.04

What It Means for Investors

With a selected WACC of 10.9%, UET United Electronic Technology AG must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.