APGN.SW
APG SGA SA
Price:  
226.00 
CHF
Volume:  
7,313.00
Switzerland | Media
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APGN.SW WACC - Weighted Average Cost of Capital

The WACC of APG SGA SA (APGN.SW) is 5.8%.

The Cost of Equity of APG SGA SA (APGN.SW) is 7.45%.
The Cost of Debt of APG SGA SA (APGN.SW) is 5.00%.

Range Selected
Cost of equity 5.90% - 9.00% 7.45%
Tax rate 17.60% - 18.60% 18.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.0% - 6.5% 5.8%
WACC

APGN.SW WACC calculation

Category Low High
Long-term bond rate 1.0% 1.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.97 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 9.00%
Tax rate 17.60% 18.60%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.0% 6.5%
Selected WACC 5.8%

APGN.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 APGN.SW:

cost_of_equity (7.45%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.97) + 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.