FHZN.SW
Flughafen Zuerich AG
Price:  
222.4 
CHF
Volume:  
20,401
Switzerland | Transportation Infrastructure

FHZN.SW WACC - Weighted Average Cost of Capital

The WACC of Flughafen Zuerich AG (FHZN.SW) is 4.5%.

The Cost of Equity of Flughafen Zuerich AG (FHZN.SW) is 4.75%.
The Cost of Debt of Flughafen Zuerich AG (FHZN.SW) is 4.25%.

RangeSelected
Cost of equity3.5% - 6.0%4.75%
Tax rate18.9% - 20.1%19.5%
Cost of debt4.0% - 4.5%4.25%
WACC3.4% - 5.6%4.5%
WACC

FHZN.SW WACC calculation

CategoryLowHigh
Long-term bond rate1.0%1.5%
Equity market risk premium5.1%6.1%
Adjusted beta0.490.66
Additional risk adjustments0.0%0.5%
Cost of equity3.5%6.0%
Tax rate18.9%20.1%
Debt/Equity ratio
0.220.22
Cost of debt4.0%4.5%
After-tax WACC3.4%5.6%
Selected WACC4.5%

FHZN.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 FHZN.SW:

cost_of_equity (4.75%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.49) + 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.