TECN.SW WACC - Weighted Average Cost of Capital

The WACC of Tecan Group AG (TECN.SW) is 7.7%.

The Cost of Equity of Tecan Group AG (TECN.SW) is 5.70%.

The Cost of Debt of Tecan Group AG (TECN.SW) is 24.50%.

	Range	Selected
Cost of equity	3.90% - 7.50%	5.70%
Tax rate	12.10% - 12.80%	12.45%
Cost of debt	4.00% - 45.00%	24.50%
WACC	3.8% - 11.5%	7.7%

WACC

TECN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.57	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	3.90%	7.50%

Tax rate	12.10%	12.80%
Debt/Equity ratio	0.15	0.15
Cost of debt	4.00%	45.00%

After-tax WACC	3.8%	11.5%


Selected WACC	7.7%

TECN.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 TECN.SW:

cost_of_equity (5.70%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.57) + 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.