HELN.SW
Helvetia Holding AG
Price:  
191.3 
CHF
Volume:  
94,338
Switzerland | Insurance

HELN.SW WACC - Weighted Average Cost of Capital

The WACC of Helvetia Holding AG (HELN.SW) is 4.9%.

The Cost of Equity of Helvetia Holding AG (HELN.SW) is 5.1%.
The Cost of Debt of Helvetia Holding AG (HELN.SW) is 5%.

RangeSelected
Cost of equity4.0% - 6.2%5.1%
Tax rate16.9% - 19.2%18.05%
Cost of debt5.0% - 5.0%5%
WACC4.0% - 5.8%4.9%
WACC

HELN.SW WACC calculation

CategoryLowHigh
Long-term bond rate1.0%1.5%
Equity market risk premium5.1%6.1%
Adjusted beta0.590.69
Additional risk adjustments0.0%0.5%
Cost of equity4.0%6.2%
Tax rate16.9%19.2%
Debt/Equity ratio
0.20.2
Cost of debt5.0%5.0%
After-tax WACC4.0%5.8%
Selected WACC4.9%

HELN.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 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.