ASCN.SW WACC - Weighted Average Cost of Capital

The WACC of Ascom Holding AG (ASCN.SW) is 4.8%.

The Cost of Equity of Ascom Holding AG (ASCN.SW) is 6.20%.

The Cost of Debt of Ascom Holding AG (ASCN.SW) is 4.25%.

	Range	Selected
Cost of equity	4.80% - 7.60%	6.20%
Tax rate	19.60% - 23.40%	21.50%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.0% - 5.5%	4.8%

WACC

ASCN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.66	0.85

Additional risk adjustments	0.5%	1.0%
Cost of equity	4.80%	7.60%

Tax rate	19.60%	23.40%
Debt/Equity ratio	1	1
Cost of debt	4.00%	4.50%

After-tax WACC	4.0%	5.5%


Selected WACC	4.8%

ASCN.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 ASCN.SW:

cost_of_equity (6.20%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.66) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.