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TAG Colonia-Immobilien AGHAM:KBU -0.86%58 WACC % is 1.06% as of Jul. 14, 2026, which is 43% below its 10-year median of 1.87. GuruFocus rates HAM:KBU with a GF Score™ of 58/100 and a GF Value™ of €4.90 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 1,844 Real Estate companies, TAG Colonia-Immobilien AG ranks better than 96.42% on this metric.
As of today (2026-07-14), TAG Colonia-Immobilien AG's weighted average cost of capital is 1.06%%. TAG Colonia-Immobilien AG's ROIC % is 0.78% (calculated using TTM income statement data).
TAG Colonia-Immobilien AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
TAG Colonia-Immobilien AG (HAM:KBU) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, TAG Colonia-Immobilien AG's weighted average cost of capital is 1.06%%. TAG Colonia-Immobilien AG's ROIC % is 0.78% (calculated using TTM income statement data).
TAG Colonia-Immobilien AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TAG Colonia-Immobilien AG WACC % Competitor Comparison
For the Real Estate - Development subindustry, TAG Colonia-Immobilien AG's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TAG Colonia-Immobilien AG WACC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, TAG Colonia-Immobilien AG's WACC % distribution charts can be found below:
* The bar in red indicates where TAG Colonia-Immobilien AG's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, TAG Colonia-Immobilien AG's market capitalization (E) is €1086.613 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, TAG Colonia-Immobilien AG's latest one-year annual average Book Value of Debt (D) is €4048.8965 Mil.
a) weight of equity = E / (E + D) = 1086.613 / (1086.613 + 4048.8965) = 0.2116
b) weight of debt = D / (E + D) = 4048.8965 / (1086.613 + 4048.8965) = 0.7884
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 3.0465%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. TAG Colonia-Immobilien AG's beta is 0.0012.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 3.0465% + 0.0012 * 6% = 3.0537%
3. Cost of Debt:
GuruFocus uses latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Dec. 2025, TAG Colonia-Immobilien AG's interest expense (positive number) was €101.821 Mil. Its total Book Value of Debt (D) is €4048.8965 Mil.
Cost of Debt = 101.821 / 4048.8965 = 2.5148%.
4. Multiply by one minus annual Tax Rate:
GuruFocus uses the most recent annual Tax Expense divided by the most recent annual Pre-Tax Income to calculate the tax rate. The calculated annual tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated annual Tax Rate = 337.843 / 428.11 = 78.91%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TAG Colonia-Immobilien AG (HAM:KBU) has a WACC % of 1.06% as of Jul. 14, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on TAG Colonia-Immobilien AG and its competitors. This is 43% below median its historical median of 1.87. Over the past decade, TAG Colonia-Immobilien AG's WACC % has ranged from 0.68 to 3.99. According to the industry distribution chart, TAG Colonia-Immobilien AG ranks #66 out of 1844 companies in the Real Estate industry, placing it in the top 3.6%.
Is TAG Colonia-Immobilien AG's WACC % too high?
TAG Colonia-Immobilien AG's current WACC % of 1.06% is 43% below median its 10-year median of 1.87. Over the past 10 years, this metric has ranged from a low of 0.68 to a high of 3.99. The Real Estate industry median WACC % is 6.50. TAG Colonia-Immobilien AG's value of 1.06% is 83.7% below this industry median. Based on the distribution chart, TAG Colonia-Immobilien AG ranks #66 out of 1844 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, TAG Colonia-Immobilien AG has a GF Score™ of 58/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TAG Colonia-Immobilien AG's WACC % compare to competitors?
According to the Real Estate industry distribution chart, TAG Colonia-Immobilien AG ranks #66 out of 1844 companies for WACC %. This places TAG Colonia-Immobilien AG in the top 4% of its industry — outperforming the majority of peers. The industry median WACC % is 6.50. TAG Colonia-Immobilien AG's value of 1.06% is 83.7% below this benchmark. Historically, TAG Colonia-Immobilien AG's own WACC % has ranged from 0.68 to 3.99 over the past decade. While the company's 10-year median is 1.87 vs. the industry median of 6.50, TAG Colonia-Immobilien AG has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Real Estate company?
The median WACC % among Real Estate companies is 6.50, based on 1,844 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TAG Colonia-Immobilien AG's current WACC % of 1.06% is 83.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on TAG Colonia-Immobilien AG and its competitors. For the Real Estate industry, the median WACC % is 6.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TAG Colonia-Immobilien AG's current WACC % is 1.06%, which is 43% below median its own 10-year median of 1.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TAG Colonia-Immobilien AG stock overvalued right now?
Based on GuruFocus' analysis, TAG Colonia-Immobilien AG (HAM:KBU) is currently considered Modestly Overvalued. The stock's GF Value™ is €4.90, compared to a current price of €5.75 — trading 17.3% above its estimated fair value. The current WACC % is 1.06%, which is 43% below median its 10-year median of 1.87 and 83.7% below the Real Estate industry median of 6.50. TAG Colonia-Immobilien AG's overall GF Score™ is 58/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For TAG Colonia-Immobilien AG (HAM:KBU), the current WACC % is 1.06% as of Jul. 14, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TAG Colonia-Immobilien AG (HAM:KBU) Overvalued in 2026?
Based on GuruFocus' analysis, TAG Colonia-Immobilien AG stock appears to be overvalued.
The current stock price of €5.75 is trading 17.3% above its estimated GF Value™ of €4.90.
GuruFocus considers TAG Colonia-Immobilien AG to be Modestly Overvalued.
Key valuation signals for HAM:KBU:
WACC %: 1.06% (43% below median its 10-year median of 1.87)
GF Value™: €4.90 vs. price of €5.75 (17.3% above fair value)
Industry Position: 83.7% below the Real Estate median (#66 of 1844)
No single metric tells the full story. See the HAM:KBU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TAG Colonia-Immobilien AG is a real estate company focused on the residential property sector. The properties owned by the company and its subsidiaries are spread across various regions in Northern and Eastern Germany and North Rhine-Westphalia. Additionally, it has also expanded operations into Poland, where the business focuses not only on the development and management of a residential property portfolio but also on sales activities. The Group's portfolio comprises several thousand residential units in Germany and Poland, including a small number of commercial units. TAG's business model in Germany consists of a long-term rental business for residential units. Its operating segments are: Rental Germany, which generates the maximum revenue, Rental Poland, Sales Poland, and Others.
58GF Score
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