PEAN.SW
Peach Property Group AG
Price:  
6.43 
CHF
Volume:  
43,173
Switzerland | Real Estate Management & Development

PEAN.SW WACC - Weighted Average Cost of Capital

The WACC of Peach Property Group AG (PEAN.SW) is 6.7%.

The Cost of Equity of Peach Property Group AG (PEAN.SW) is 6.3%.
The Cost of Debt of Peach Property Group AG (PEAN.SW) is 8.4%.

RangeSelected
Cost of equity4.6% - 8.0%6.3%
Tax rate16.4% - 19.2%17.8%
Cost of debt4.0% - 12.8%8.4%
WACC3.6% - 9.9%6.7%
WACC

PEAN.SW WACC calculation

CategoryLowHigh
Long-term bond rate1.0%1.5%
Equity market risk premium5.1%6.1%
Adjusted beta0.70.99
Additional risk adjustments0.0%0.5%
Cost of equity4.6%8.0%
Tax rate16.4%19.2%
Debt/Equity ratio
4.294.29
Cost of debt4.0%12.8%
After-tax WACC3.6%9.9%
Selected WACC6.7%

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 (6.30%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.7) + 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.