SWA.DE WACC - Weighted Average Cost of Capital
The WACC of Schloss Wachenheim AG (SWA.DE) is 5.4%.
| Range | Selected | |
| Cost of equity | 5.1% - 9.2% | 7.15% |
| Tax rate | 22.8% - 23.3% | 23.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.2% - 6.6% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.45 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 9.2% |
| Tax rate | 22.8% | 23.3% |
| Debt/Equity ratio | 0.82 | 0.82 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.2% | 6.6% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SWA.DE | Schloss Wachenheim AG | 0.82 | 0.03 | 0.02 |
| ADVI.PA | Advini SA | 2.55 | 0.38 | 0.13 |
| ALLAN.PA | Lanson BCC SA | 2.21 | 0.24 | 0.09 |
| ARCUS.OL | Arcus ASA | 0.62 | 0.45 | 0.3 |
| CCR.L | C&C Group PLC | 0.5 | 1.17 | 0.85 |
| LINDA.TL | Linda Nektar AS | 0 | 0.84 | 0.84 |
| MBWS.PA | Marie Brizard Wine and Spirits SA | 0.02 | -0.02 | -0.02 |
| RCO.PA | Remy Cointreau SA | 0.29 | 1.01 | 0.82 |
| STCK.L | Stock Spirits Group PLC | 0.09 | 0.94 | 0.88 |
| VRAP.PA | Vranken Pommery Monopole SA | 5.93 | 0.04 | 0.01 |
| Low | High | |
| Unlevered beta | 0.11 | 0.51 |
| Relevered beta | 0.18 | 0.84 |
| Adjusted relevered beta | 0.45 | 0.89 |
SWA.DE'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 SWA.DE:
cost_of_equity (7.15%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.45) + 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.