NEWN.SW WACC - Weighted Average Cost of Capital
The WACC of New Value AG (NEWN.SW) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.9% | 6.65% |
| Tax rate | 16.6% - 17.9% | 17.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 7.3% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 1.6% | 2.1% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.79 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.9% |
| Tax rate | 16.6% | 17.9% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 7.3% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NEWN.SW | New Value AG | 0.19 | 1.15 | 1 |
| AIN.WA | ABS Investment SA | 1.04 | -0.12 | -0.07 |
| CNLCAP.AT | CNL Capital EKES AIFM | 0.88 | 0.16 | 0.09 |
| GEQ.MI | Gequity SpA | 1.66 | 0.18 | 0.08 |
| MAFL.L | Mineral & Financial Investments Ltd | 0 | 0.22 | 0.22 |
| MWT.WA | M.W. Trade SA | 0.05 | 0.38 | 0.36 |
| SPK.WA | Spark VC Alternatywna Spolka Inwestycyjna SA | 0 | 0.37 | 0.37 |
| Low | High | |
| Unlevered beta | 0.14 | 0.31 |
| Relevered beta | 0.69 | 0.88 |
| Adjusted relevered beta | 0.79 | 0.92 |
NEWN.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 NEWN.SW:
cost_of_equity (6.65%) = risk_free_rate (1.85%) + equity_risk_premium (5.20%) * adjusted_beta (0.79) + 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.