AMS.SW WACC - Weighted Average Cost of Capital

The WACC of ams AG (AMS.SW) is 11.7%.

The Cost of Equity of ams AG (AMS.SW) is 12.95%.

The Cost of Debt of ams AG (AMS.SW) is 13.05%.

	Range	Selected
Cost of equity	9.00% - 16.90%	12.95%
Tax rate	9.30% - 16.60%	12.95%
Cost of debt	5.10% - 21.00%	13.05%
WACC	6.0% - 17.3%	11.7%

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	1.58	2.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	16.90%

Tax rate	9.30%	16.60%
Debt/Equity ratio	2.12	2.12
Cost of debt	5.10%	21.00%

After-tax WACC	6.0%	17.3%


Selected WACC	11.7%

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 (12.95%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.58) + 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.