SPI.VI WACC - Weighted Average Cost of Capital

The WACC of S Immo AG (SPI.VI) is 5.0%.

The Cost of Equity of S Immo AG (SPI.VI) is 6.50%.

The Cost of Debt of S Immo AG (SPI.VI) is 4.50%.

	Range	Selected
Cost of equity	5.60% - 7.40%	6.50%
Tax rate	15.10% - 17.30%	16.20%
Cost of debt	4.00% - 5.00%	4.50%
WACC	4.4% - 5.6%	5.0%

WACC

SPI.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.5	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	7.40%

Tax rate	15.10%	17.30%
Debt/Equity ratio	1.3	1.3
Cost of debt	4.00%	5.00%

After-tax WACC	4.4%	5.6%


Selected WACC	5.0%

SPI.VI'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 SPI.VI:

cost_of_equity (6.50%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.5) + 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.