UBXN.SW
U Blox Holding AG
Price:  
85.00 
CHF
Volume:  
26,479.00
Switzerland | Semiconductors & Semiconductor Equipment
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UBXN.SW WACC - Weighted Average Cost of Capital

The WACC of U Blox Holding AG (UBXN.SW) is 5.0%.

The Cost of Equity of U Blox Holding AG (UBXN.SW) is 5.05%.
The Cost of Debt of U Blox Holding AG (UBXN.SW) is 5.50%.

Range Selected
Cost of equity 4.00% - 6.10% 5.05%
Tax rate 16.90% - 21.60% 19.25%
Cost of debt 4.00% - 7.00% 5.50%
WACC 3.9% - 6.1% 5.0%
WACC

UBXN.SW WACC calculation

Category Low High
Long-term bond rate 1.0% 1.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.39 0.51
Additional risk adjustments 1.0% 1.5%
Cost of equity 4.00% 6.10%
Tax rate 16.90% 21.60%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.00% 7.00%
After-tax WACC 3.9% 6.1%
Selected WACC 5.0%

UBXN.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 UBXN.SW:

cost_of_equity (5.05%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.39) + risk_adjustments (1.25%)

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