CSGN.SW
Credit Suisse Group AG
Price:  
0.82 
CHF
Volume:  
41,886,100
Switzerland | Capital Markets

CSGN.SW WACC - Weighted Average Cost of Capital

The WACC of Credit Suisse Group AG (CSGN.SW) is 5.4%.

The Cost of Equity of Credit Suisse Group AG (CSGN.SW) is 79.85%.
The Cost of Debt of Credit Suisse Group AG (CSGN.SW) is 5%.

RangeSelected
Cost of equity44.1% - 115.6%79.85%
Tax rate16.8% - 18.0%17.4%
Cost of debt5.0% - 5.0%5%
WACC4.8% - 5.9%5.4%
WACC

CSGN.SW WACC calculation

CategoryLowHigh
Long-term bond rate1.0%1.5%
Equity market risk premium5.1%6.1%
Adjusted beta8.4618.62
Additional risk adjustments0.0%0.5%
Cost of equity44.1%115.6%
Tax rate16.8%18.0%
Debt/Equity ratio
59.8259.82
Cost of debt5.0%5.0%
After-tax WACC4.8%5.9%
Selected WACC5.4%

CSGN.SW WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.240.55
Relevered beta12.1327.3
Adjusted relevered beta8.4618.62

CSGN.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 CSGN.SW:

cost_of_equity (79.85%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (8.46) + 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.