The WACC of Helvetia Holding AG (HELN.SW) is 4.9%.
Range | Selected | |
Cost of equity | 4.0% - 6.2% | 5.1% |
Tax rate | 16.9% - 19.2% | 18.05% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.0% - 5.8% | 4.9% |
Category | Low | High |
Long-term bond rate | 1.0% | 1.5% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.59 | 0.69 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.0% | 6.2% |
Tax rate | 16.9% | 19.2% |
Debt/Equity ratio | 0.2 | 0.2 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.0% | 5.8% |
Selected WACC | 4.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
HELN.SW | Helvetia Holding AG | 0.2 | 0.54 | 0.47 |
ASRNL.AS | ASR Nederland NV | 0.88 | 0.61 | 0.35 |
BALN.SW | Baloise Holding AG | 0.27 | 0.56 | 0.46 |
GJF.OL | Gjensidige Forsikring ASA | 0.04 | 0.17 | 0.16 |
PZU.WA | Powszechny Zaklad Ubezpieczen SA | 6.72 | 0.9 | 0.14 |
SAMPO.HE | Sampo plc | 0.11 | 0.52 | 0.48 |
TOP.CO | Topdanmark A/S | 0.04 | -0.03 | -0.03 |
UNI.MI | Unipol Gruppo SpA | 0.45 | 1.04 | 0.76 |
US.MI | UnipolSai Assicurazioni SpA | 0.44 | 0.4 | 0.29 |
VIG.VI | Vienna Insurance Group AG Wiener Versicherung Gruppe | 0.31 | 0.73 | 0.58 |
Low | High | |
Unlevered beta | 0.33 | 0.46 |
Relevered beta | 0.39 | 0.54 |
Adjusted relevered beta | 0.59 | 0.69 |
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 HELN.SW:
cost_of_equity (5.10%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.59) + 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.