SGKN.SW WACC - Weighted Average Cost of Capital
The WACC of St Galler Kantonalbank AG (SGKN.SW) is 4.4%.
| Range | Selected | |
| Cost of equity | 3.8% - 6.2% | 5% |
| Tax rate | 16.5% - 16.8% | 16.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.1% - 4.6% | 4.4% |
| Category | Low | High |
| Long-term bond rate | 1.1% | 1.6% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.57 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 3.8% | 6.2% |
| Tax rate | 16.5% | 16.8% |
| Debt/Equity ratio | 3.26 | 3.26 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.1% | 4.6% |
| Selected WACC | 4.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SGKN.SW | St Galler Kantonalbank AG | 3.26 | 0.29 | 0.08 |
| AASB.OL | Aasen Sparebank | 6.01 | 0 | 0 |
| AURG.OL | Aurskog Sparebank | 4.97 | 0.35 | 0.07 |
| CRLA.PA | Caisse Regionale de Credit Agricole Mutuel du Languedoc | 0.96 | 0.67 | 0.37 |
| HSPG.OL | Holand og Setskog Sparebank | 23.55 | 0.35 | 0.02 |
| KRAB.OL | Kraft Bank ASA | 0.12 | -0.15 | -0.13 |
| NISB.OL | Nidaros Sparebank | 6.01 | 0.49 | 0.08 |
| SOGN.OL | Sogn Sparebank | 4.33 | 0.48 | 0.1 |
| VVL.OL | Voss Veksel og Landmandsbank ASA | 1.26 | 0.49 | 0.24 |
| Low | High | |
| Unlevered beta | 0.07 | 0.08 |
| Relevered beta | 0.36 | 0.55 |
| Adjusted relevered beta | 0.57 | 0.7 |
SGKN.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 SGKN.SW:
cost_of_equity (5.00%) = risk_free_rate (1.35%) + equity_risk_premium (5.20%) * adjusted_beta (0.57) + 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.