SFPN.SW WACC - Weighted Average Cost of Capital
The WACC of SF Urban Properties AG (SFPN.SW) is 4.7%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.2% | 6.3% |
| Tax rate | 21.3% - 22.3% | 21.8% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 4.2% - 5.3% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 1.0% | 1.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.57 | 0.61 |
| Additional risk adjustments | 1.5% | 2.0% |
| Cost of equity | 5.4% | 7.2% |
| Tax rate | 21.3% | 22.3% |
| Debt/Equity ratio | 1.13 | 1.13 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 4.2% | 5.3% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SFPN.SW | SF Urban Properties AG | 1.13 | 0.06 | 0.03 |
| BRI.MI | Brioschi Sviluppo Immobiliare SpA | 1.78 | 0.52 | 0.22 |
| CFI.WA | CFI Holding SA | 0.66 | 0.34 | 0.22 |
| CPG.WA | Capital Park SA | 1.09 | 0.01 | 0.01 |
| FC9.DE | FCR Immobilien AG | 0.64 | 0.33 | 0.22 |
| FPO.L | First Property Group PLC | 0.58 | 0.34 | 0.24 |
| GPG.ST | Genova Property Group AB | 2.97 | 0.52 | 0.16 |
| KAMP.AT | REDS Real Estate Development and Services SA | 0.2 | -0.4 | -0.35 |
| MLG.WA | MLP Group SA | 1.53 | 0.71 | 0.32 |
| RN.MI | Risanamento SpA | 0 | 0.6 | 0.59 |
| Low | High | |
| Unlevered beta | 0.19 | 0.22 |
| Relevered beta | 0.36 | 0.42 |
| Adjusted relevered beta | 0.57 | 0.61 |
SFPN.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 SFPN.SW:
cost_of_equity (6.30%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.57) + risk_adjustments (1.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.