STMN.SW
Straumann Holding AG
Price:  
101.65 
CHF
Volume:  
382,154.00
Switzerland | Health Care Equipment & Supplies
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STMN.SW WACC - Weighted Average Cost of Capital

The WACC of Straumann Holding AG (STMN.SW) is 5.0%.

The Cost of Equity of Straumann Holding AG (STMN.SW) is 5.05%.
The Cost of Debt of Straumann Holding AG (STMN.SW) is 4.25%.

Range Selected
Cost of equity 3.70% - 6.40% 5.05%
Tax rate 17.30% - 17.90% 17.60%
Cost of debt 4.00% - 4.50% 4.25%
WACC 3.7% - 6.3% 5.0%
WACC

STMN.SW WACC calculation

Category Low High
Long-term bond rate 1.0% 1.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.54 0.72
Additional risk adjustments 0.0% 0.5%
Cost of equity 3.70% 6.40%
Tax rate 17.30% 17.90%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 4.50%
After-tax WACC 3.7% 6.3%
Selected WACC 5.0%

STMN.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 STMN.SW:

cost_of_equity (5.05%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.54) + 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.