ALPN.SW WACC - Weighted Average Cost of Capital

The WACC of Alpine Select AG (ALPN.SW) is 6.4%.

The Cost of Equity of Alpine Select AG (ALPN.SW) is 6.45%.

The Cost of Debt of Alpine Select AG (ALPN.SW) is 4.25%.

	Range	Selected
Cost of equity	5.10% - 7.80%	6.45%
Tax rate	8.70% - 17.90%	13.30%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.1% - 7.7%	6.4%

WACC

ALPN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.62	0.79

Additional risk adjustments	1.0%	1.5%
Cost of equity	5.10%	7.80%

Tax rate	8.70%	17.90%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	4.50%

After-tax WACC	5.1%	7.7%


Selected WACC	6.4%

ALPN.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 ALPN.SW:

cost_of_equity (6.45%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.62) + 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.