SWON.SW WACC - Weighted Average Cost of Capital

The WACC of Softwareone Holding AG (SWON.SW) is 7.2%.

The Cost of Equity of Softwareone Holding AG (SWON.SW) is 6.35%.

The Cost of Debt of Softwareone Holding AG (SWON.SW) is 47.25%.

	Range	Selected
Cost of equity	5.30% - 7.40%	6.35%
Tax rate	16.80% - 18.00%	17.40%
Cost of debt	9.50% - 85.00%	47.25%
WACC	5.3% - 9.1%	7.2%

WACC

SWON.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.45	0.56

Additional risk adjustments	2.0%	2.5%
Cost of equity	5.30%	7.40%

Tax rate	16.80%	18.00%
Debt/Equity ratio	0.03	0.03
Cost of debt	9.50%	85.00%

After-tax WACC	5.3%	9.1%


Selected WACC	7.2%

SWON.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 SWON.SW:

cost_of_equity (6.35%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.45) + risk_adjustments (2.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.