FTON.SW WACC - Weighted Average Cost of Capital

The WACC of Feintool International Holding AG (FTON.SW) is 6.2%.

The Cost of Equity of Feintool International Holding AG (FTON.SW) is 7.80%.

The Cost of Debt of Feintool International Holding AG (FTON.SW) is 5.60%.

	Range	Selected
Cost of equity	6.20% - 9.40%	7.80%
Tax rate	24.20% - 29.20%	26.70%
Cost of debt	4.20% - 7.00%	5.60%
WACC	4.8% - 7.5%	6.2%

WACC

FTON.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.02	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	9.40%

Tax rate	24.20%	29.20%
Debt/Equity ratio	0.79	0.79
Cost of debt	4.20%	7.00%

After-tax WACC	4.8%	7.5%


Selected WACC	6.2%

FTON.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 FTON.SW:

cost_of_equity (7.80%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.02) + 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.