SFZN.SW
Siegfried Holding AG
Price:  
98.90 
CHF
Volume:  
59,130.00
Switzerland | Life Sciences Tools & Services
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SFZN.SW WACC - Weighted Average Cost of Capital

The WACC of Siegfried Holding AG (SFZN.SW) is 5.4%.

The Cost of Equity of Siegfried Holding AG (SFZN.SW) is 5.60%.
The Cost of Debt of Siegfried Holding AG (SFZN.SW) is 4.25%.

Range Selected
Cost of equity 3.80% - 7.40% 5.60%
Tax rate 22.10% - 24.70% 23.40%
Cost of debt 4.00% - 4.50% 4.25%
WACC 3.8% - 7.0% 5.4%
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 0.56 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 3.80% 7.40%
Tax rate 22.10% 24.70%
Debt/Equity ratio 0.11 0.11
Cost of debt 4.00% 4.50%
After-tax WACC 3.8% 7.0%
Selected WACC 5.4%

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 (5.60%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.