KOMN.SW WACC - Weighted Average Cost of Capital

The WACC of Komax Holding AG (KOMN.SW) is 6.1%.

The Cost of Equity of Komax Holding AG (KOMN.SW) is 6.15%.

The Cost of Debt of Komax Holding AG (KOMN.SW) is 7.40%.

	Range	Selected
Cost of equity	4.90% - 7.40%	6.15%
Tax rate	16.80% - 18.00%	17.40%
Cost of debt	5.30% - 9.50%	7.40%
WACC	4.7% - 7.5%	6.1%

WACC

KOMN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.76	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	7.40%

Tax rate	16.80%	18.00%
Debt/Equity ratio	0.5	0.5
Cost of debt	5.30%	9.50%

After-tax WACC	4.7%	7.5%


Selected WACC	6.1%

KOMN.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 KOMN.SW:

cost_of_equity (6.15%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.76) + 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.