523558.BO WACC - Weighted Average Cost of Capital

The WACC of Swiss Military Consumer Goods Ltd (523558.BO) is 14.1%.

The Cost of Equity of Swiss Military Consumer Goods Ltd (523558.BO) is 14.35%.

The Cost of Debt of Swiss Military Consumer Goods Ltd (523558.BO) is 7.50%.

	Range	Selected
Cost of equity	13.10% - 15.60%	14.35%
Tax rate	12.90% - 23.10%	18.00%
Cost of debt	7.50% - 7.50%	7.50%
WACC	12.9% - 15.3%	14.1%

WACC

523558.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.75	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	15.60%

Tax rate	12.90%	23.10%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.50%	7.50%

After-tax WACC	12.9%	15.3%


Selected WACC	14.1%

523558.BO'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 523558.BO:

cost_of_equity (14.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.75) + 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.