AMS.SW WACC - Weighted Average Cost of Capital

The WACC of ams AG (AMS.SW) is 11.9%.

The Cost of Equity of ams AG (AMS.SW) is 14.85%.

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

	Range	Selected
Cost of equity	10.60% - 19.10%	14.85%
Tax rate	9.30% - 16.60%	12.95%
Cost of debt	5.10% - 21.00%	13.05%
WACC	6.0% - 17.9%	11.9%

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	1.89	2.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	19.10%

Tax rate	9.30%	16.60%
Debt/Equity ratio	3.4	3.4
Cost of debt	5.10%	21.00%

After-tax WACC	6.0%	17.9%


Selected WACC	11.9%

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 (14.85%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.89) + 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.