PEAN.SW WACC - Weighted Average Cost of Capital

The WACC of Peach Property Group AG (PEAN.SW) is 6.8%.

The Cost of Equity of Peach Property Group AG (PEAN.SW) is 6.55%.

The Cost of Debt of Peach Property Group AG (PEAN.SW) is 8.40%.

	Range	Selected
Cost of equity	5.30% - 7.80%	6.55%
Tax rate	16.40% - 19.20%	17.80%
Cost of debt	4.00% - 12.80%	8.40%
WACC	3.7% - 9.8%	6.8%

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	0.85	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	7.80%

Tax rate	16.40%	19.20%
Debt/Equity ratio	4.34	4.34
Cost of debt	4.00%	12.80%

After-tax WACC	3.7%	9.8%


Selected WACC	6.8%

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 (6.55%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.85) + 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.