BARN.SW WACC - Weighted Average Cost of Capital

The WACC of Barry Callebaut AG (BARN.SW) is 4.7%.

The Cost of Equity of Barry Callebaut AG (BARN.SW) is 4.15%.

The Cost of Debt of Barry Callebaut AG (BARN.SW) is 6.55%.

	Range	Selected
Cost of equity	3.10% - 5.20%	4.15%
Tax rate	17.30% - 18.40%	17.85%
Cost of debt	6.20% - 6.90%	6.55%
WACC	4.0% - 5.4%	4.7%

WACC

BARN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.42	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	3.10%	5.20%

Tax rate	17.30%	18.40%
Debt/Equity ratio	0.84	0.84
Cost of debt	6.20%	6.90%

After-tax WACC	4.0%	5.4%


Selected WACC	4.7%

BARN.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 BARN.SW:

cost_of_equity (4.15%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.42) + 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.