UBS.VI WACC - Weighted Average Cost of Capital

The WACC of UBM Development AG (UBS.VI) is 9.5%.

The Cost of Equity of UBM Development AG (UBS.VI) is 8.05%.

The Cost of Debt of UBM Development AG (UBS.VI) is 13.40%.

	Range	Selected
Cost of equity	5.80% - 10.30%	8.05%
Tax rate	23.20% - 27.40%	25.30%
Cost of debt	4.00% - 22.80%	13.40%
WACC	3.5% - 15.5%	9.5%

WACC

UBS.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.53	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	10.30%

Tax rate	23.20%	27.40%
Debt/Equity ratio	5.29	5.29
Cost of debt	4.00%	22.80%

After-tax WACC	3.5%	15.5%


Selected WACC	9.5%

UBS.VI'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 UBS.VI:

cost_of_equity (8.05%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.53) + 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.