BARN.SW WACC - Weighted Average Cost of Capital

The WACC of Barry Callebaut AG (BARN.SW) is 4.8%.

The Cost of Equity of Barry Callebaut AG (BARN.SW) is 5.20%.

The Cost of Debt of Barry Callebaut AG (BARN.SW) is 5.30%.

	Range	Selected
Cost of equity	4.30% - 6.10%	5.20%
Tax rate	17.30% - 17.70%	17.50%
Cost of debt	4.60% - 6.00%	5.30%
WACC	4.1% - 5.6%	4.8%

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	0.46	0.52

Additional risk adjustments	1.0%	1.5%
Cost of equity	4.30%	6.10%

Tax rate	17.30%	17.70%
Debt/Equity ratio	0.84	0.84
Cost of debt	4.60%	6.00%

After-tax WACC	4.1%	5.6%


Selected WACC	4.8%

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 (5.20%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.46) + risk_adjustments (1.25%)

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