STLN.SW WACC - Weighted Average Cost of Capital

The WACC of Swiss Steel Holding AG (STLN.SW) is 9.3%.

The Cost of Equity of Swiss Steel Holding AG (STLN.SW) is 61.40%.

The Cost of Debt of Swiss Steel Holding AG (STLN.SW) is 6.90%.

	Range	Selected
Cost of equity	54.90% - 67.90%	61.40%
Tax rate	5.80% - 13.00%	9.40%
Cost of debt	6.80% - 7.00%	6.90%
WACC	9.1% - 9.5%	9.3%

WACC

STLN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	10.58	10.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	54.90%	67.90%

Tax rate	5.80%	13.00%
Debt/Equity ratio	17.24	17.24
Cost of debt	6.80%	7.00%

After-tax WACC	9.1%	9.5%


Selected WACC	9.3%

STLN.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 STLN.SW:

cost_of_equity (61.40%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (10.58) + 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.