AUTN.SW WACC - Weighted Average Cost of Capital

The WACC of Autoneum Holding AG (AUTN.SW) is 5.5%.

The Cost of Equity of Autoneum Holding AG (AUTN.SW) is 6.95%.

The Cost of Debt of Autoneum Holding AG (AUTN.SW) is 4.25%.

	Range	Selected
Cost of equity	5.50% - 8.40%	6.95%
Tax rate	25.90% - 27.70%	26.80%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.6% - 6.5%	5.5%

WACC

AUTN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.9	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	8.40%

Tax rate	25.90%	27.70%
Debt/Equity ratio	0.61	0.61
Cost of debt	4.00%	4.50%

After-tax WACC	4.6%	6.5%


Selected WACC	5.5%

AUTN.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 AUTN.SW:

cost_of_equity (6.95%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.9) + 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.