ADVN.SW WACC - Weighted Average Cost of Capital
The WACC of Adval Tech Holding AG (ADVN.SW) is 4.8%.
| Range | Selected | |
| Cost of equity | 4.2% - 6.1% | 5.15% |
| Tax rate | 27.2% - 36.6% | 31.9% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.1% - 5.4% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 1.0% | 1.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.44 | 0.51 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 4.2% | 6.1% |
| Tax rate | 27.2% | 36.6% |
| Debt/Equity ratio | 0.3 | 0.3 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.1% | 5.4% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ADVN.SW | Adval Tech Holding AG | 0.3 | 0.35 | 0.3 |
| ALNSC.PA | NSC Groupe SA | 0.62 | 0.11 | 0.08 |
| GLA1V.HE | Glaston Oyj Abp | 0.56 | 0.28 | 0.2 |
| KWG.DE | KHD Humboldt Wedag International AG | 0.07 | 0.56 | 0.53 |
| LSC.L | London Security PLC | 0.02 | -0.25 | -0.25 |
| MGT.WA | Mangata Holding SA | 0.36 | 0.55 | 0.45 |
| MZX.DE | Masterflex SE | 0.19 | 0.1 | 0.09 |
| PREC.PA | Precia SA | 0.17 | 0.3 | 0.27 |
| RWL.WA | Rawlplug SA | 0.79 | 0.26 | 0.17 |
| TOHN.SW | Tornos Holding AG | 0.05 | -0.12 | -0.12 |
| Low | High | |
| Unlevered beta | 0.14 | 0.23 |
| Relevered beta | 0.16 | 0.27 |
| Adjusted relevered beta | 0.44 | 0.51 |
ADVN.SW'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 ADVN.SW:
cost_of_equity (5.15%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.44) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.