SQN.SW WACC - Weighted Average Cost of Capital

The WACC of Swissquote Group Holding SA (SQN.SW) is 6.2%.

The Cost of Equity of Swissquote Group Holding SA (SQN.SW) is 8.70%.

The Cost of Debt of Swissquote Group Holding SA (SQN.SW) is 5.50%.

	Range	Selected
Cost of equity	5.30% - 12.10%	8.70%
Tax rate	14.40% - 14.80%	14.60%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.1% - 8.2%	6.2%

WACC

SQN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.85	1.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	12.10%

Tax rate	14.40%	14.80%
Debt/Equity ratio	1.69	1.69
Cost of debt	4.00%	7.00%

After-tax WACC	4.1%	8.2%


Selected WACC	6.2%

SQN.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 SQN.SW:

cost_of_equity (8.70%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.85) + 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.