LAND.SW WACC - Weighted Average Cost of Capital
The WACC of Landis+Gyr Group AG (LAND.SW) is 7.5%.
| Range | Selected | |
| Cost of equity | 6.4% - 9.7% | 8.05% |
| Tax rate | 11.6% - 14.4% | 13% |
| Cost of debt | 4.0% - 5.7% | 4.85% |
| WACC | 6.0% - 9.0% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 1.0% | 1.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.07 | 1.26 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 9.7% |
| Tax rate | 11.6% | 14.4% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 4.0% | 5.7% |
| After-tax WACC | 6.0% | 9.0% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LAND.SW | Landis+Gyr Group AG | 0.17 | 0.89 | 0.78 |
| BAR.BR | Barco NV | 0.09 | 0.75 | 0.69 |
| COTN.SW | Comet Holding AG | 0.05 | 1.3 | 1.25 |
| DAL.MI | Datalogic SpA | 0.33 | 0.59 | 0.46 |
| JEN.DE | Jenoptik AG | 0.42 | 1.48 | 1.09 |
| KTCG.VI | Kapsch Trafficcom AG | 1.5 | 0.6 | 0.26 |
| LEHN.SW | Lem Holding SA | 0.15 | 1.47 | 1.3 |
| MYCR.ST | Mycronic AB (publ) | 0.01 | 1.2 | 1.19 |
| OXIG.L | Oxford Instruments PLC | 0.04 | 1.53 | 1.48 |
| SXS.L | Spectris PLC | 0.22 | 1.62 | 1.36 |
| Low | High | |
| Unlevered beta | 0.96 | 1.21 |
| Relevered beta | 1.1 | 1.39 |
| Adjusted relevered beta | 1.07 | 1.26 |
LAND.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 LAND.SW:
cost_of_equity (8.05%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.07) + 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.