PEAN.SW WACC - Weighted Average Cost of Capital

The WACC of Peach Property Group AG (PEAN.SW) is 5.0%.

The Cost of Equity of Peach Property Group AG (PEAN.SW) is 11.70%.

The Cost of Debt of Peach Property Group AG (PEAN.SW) is 4.25%.

	Range	Selected
Cost of equity	7.90% - 15.50%	11.70%
Tax rate	14.70% - 18.30%	16.50%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.2% - 5.8%	5.0%

WACC

PEAN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.36	2.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	15.50%

Tax rate	14.70%	18.30%
Debt/Equity ratio	4.46	4.46
Cost of debt	4.00%	4.50%

After-tax WACC	4.2%	5.8%


Selected WACC	5.0%

PEAN.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 PEAN.SW:

cost_of_equity (11.70%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.36) + 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.