LAND.SW WACC - Weighted Average Cost of Capital

The WACC of Landis+Gyr Group AG (LAND.SW) is 6.4%.

The Cost of Equity of Landis+Gyr Group AG (LAND.SW) is 6.75%.

The Cost of Debt of Landis+Gyr Group AG (LAND.SW) is 4.90%.

	Range	Selected
Cost of equity	4.90% - 8.60%	6.75%
Tax rate	11.60% - 14.40%	13.00%
Cost of debt	4.10% - 5.70%	4.90%
WACC	4.7% - 8.0%	6.4%

WACC

LAND.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.77	1.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	8.60%

Tax rate	11.60%	14.40%
Debt/Equity ratio	0.2	0.2
Cost of debt	4.10%	5.70%

After-tax WACC	4.7%	8.0%


Selected WACC	6.4%

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 (6.75%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.77) + 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.