CLTN.SW WACC - Weighted Average Cost of Capital
The WACC of Coltene Holding AG (CLTN.SW) is 5.8%.
| Range | Selected | |
| Cost of equity | 4.6% - 7.5% | 6.05% |
| Tax rate | 22.9% - 24.2% | 23.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 7.1% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 1.0% | 1.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.71 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.6% | 7.5% |
| Tax rate | 22.9% | 24.2% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 7.1% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CLTN.SW | Coltene Holding AG | 0.1 | 0.75 | 0.69 |
| AMS.L | Advanced Medical Solutions Group PLC | 0.21 | 1.84 | 1.58 |
| BACTI B.ST | Bactiguard Holding AB | 0.2 | 0.01 | 0.01 |
| GENT.OL | Gentian Diagnostics AS | 0.01 | 0.04 | 0.04 |
| MED.SW | Medartis Holding AG | 0.13 | 1.18 | 1.07 |
| ODX.L | Omega Diagnostics Group PLC | 0.02 | 0.61 | 0.6 |
| SPEC.L | Inspecs Group PLC | 1.06 | 0.72 | 0.4 |
| TSTL.L | Tristel PLC | 0.03 | 0.98 | 0.96 |
| VBSN.SW | IVF Hartmann Holding AG | 0 | 0.05 | 0.05 |
| XVIVO.ST | Xvivo Perfusion AB | 0 | 1.3 | 1.29 |
| Low | High | |
| Unlevered beta | 0.52 | 0.8 |
| Relevered beta | 0.57 | 0.87 |
| Adjusted relevered beta | 0.71 | 0.91 |
CLTN.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 CLTN.SW:
cost_of_equity (6.05%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.