SWTQ.SW WACC - Weighted Average Cost of Capital

The WACC of Schweiter Technologies AG (SWTQ.SW) is 6.1%.

The Cost of Equity of Schweiter Technologies AG (SWTQ.SW) is 6.60%.

The Cost of Debt of Schweiter Technologies AG (SWTQ.SW) is 4.70%.

	Range	Selected
Cost of equity	5.50% - 7.70%	6.60%
Tax rate	20.90% - 21.40%	21.15%
Cost of debt	4.00% - 5.40%	4.70%
WACC	5.1% - 7.1%	6.1%

WACC

SWTQ.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.88	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	7.70%

Tax rate	20.90%	21.40%
Debt/Equity ratio	0.2	0.2
Cost of debt	4.00%	5.40%

After-tax WACC	5.1%	7.1%


Selected WACC	6.1%

SWTQ.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 SWTQ.SW:

cost_of_equity (6.60%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.88) + 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.