DUFN.SW WACC - Weighted Average Cost of Capital

The WACC of Dufry AG (DUFN.SW) is 6.1%.

The Cost of Equity of Dufry AG (DUFN.SW) is 10.20%.

The Cost of Debt of Dufry AG (DUFN.SW) is 4.90%.

	Range	Selected
Cost of equity	7.70% - 12.70%	10.20%
Tax rate	27.40% - 40.10%	33.75%
Cost of debt	4.00% - 5.80%	4.90%
WACC	4.9% - 7.3%	6.1%

WACC

DUFN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	5.5%	6.5%
Adjusted beta	1.13	1.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	12.70%

Tax rate	27.40%	40.10%
Debt/Equity ratio	1.42	1.42
Cost of debt	4.00%	5.80%

After-tax WACC	4.9%	7.3%


Selected WACC	6.1%

DUFN.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 DUFN.SW:

cost_of_equity (10.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.00%) * adjusted_beta (1.13) + 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.