AMS.SW WACC - Weighted Average Cost of Capital

The WACC of ams AG (AMS.SW) is 12.3%.

The Cost of Equity of ams AG (AMS.SW) is 14.45%.

The Cost of Debt of ams AG (AMS.SW) is 13.45%.

	Range	Selected
Cost of equity	11.80% - 17.10%	14.45%
Tax rate	7.90% - 15.20%	11.55%
Cost of debt	5.90% - 21.00%	13.45%
WACC	7.1% - 17.6%	12.3%

WACC

AMS.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2.13	2.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	17.10%

Tax rate	7.90%	15.20%
Debt/Equity ratio	2.9	2.9
Cost of debt	5.90%	21.00%

After-tax WACC	7.1%	17.6%


Selected WACC	12.3%

AMS.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 AMS.SW:

cost_of_equity (14.45%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (2.13) + 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.