SFZN.SW WACC - Weighted Average Cost of Capital

The WACC of Siegfried Holding AG (SFZN.SW) is 5.8%.

The Cost of Equity of Siegfried Holding AG (SFZN.SW) is 6.10%.

The Cost of Debt of Siegfried Holding AG (SFZN.SW) is 4.25%.

	Range	Selected
Cost of equity	4.50% - 7.70%	6.10%
Tax rate	22.10% - 24.70%	23.40%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.4% - 7.3%	5.8%

WACC

SFZN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.7	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.50%	7.70%

Tax rate	22.10%	24.70%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.00%	4.50%

After-tax WACC	4.4%	7.3%


Selected WACC	5.8%

SFZN.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 SFZN.SW:

cost_of_equity (6.10%) = 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.