VAHN.SW WACC - Weighted Average Cost of Capital
The WACC of Vaudoise Assurances Holding SA (VAHN.SW) is 6.6%.
| Range | Selected | |
| Cost of equity | 7.2% - 10.4% | 8.8% |
| Tax rate | 11.3% - 11.5% | 11.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.8% - 7.4% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 1.0% | 1.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.22 | 1.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 10.4% |
| Tax rate | 11.3% | 11.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.8% | 7.4% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VAHN.SW | Vaudoise Assurances Holding SA | 1.07 | 0.39 | 0.2 |
| AV.L | Aviva PLC | 0.43 | 1.27 | 0.92 |
| EG7.IR | FBD Holdings PLC | 0.1 | 0.44 | 0.41 |
| HUW.L | Helios Underwriting PLC | 0.38 | 0.67 | 0.5 |
| NET.MI | Net Insurance SpA | 0.1 | 0.24 | 0.22 |
| PROT.OL | Protector Forsikring ASA | 0.06 | 0.63 | 0.6 |
| RAYSG.IS | Ray Sigorta AS | 0 | 0.98 | 0.98 |
| SJOVA.IC | Sjova-Almennar tryggingar hf | 0.02 | 1.05 | 1.03 |
| TLX.DE | Talanx AG | 0.3 | 0.99 | 0.79 |
| TURSG.IS | Turkiye Sigorta AS | 0 | 1.05 | 1.05 |
| ZURN.SW | Zurich Insurance Group AG | 0.14 | 0.87 | 0.77 |
| Low | High | |
| Unlevered beta | 0.6 | 0.79 |
| Relevered beta | 1.33 | 1.58 |
| Adjusted relevered beta | 1.22 | 1.39 |
VAHN.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 VAHN.SW:
cost_of_equity (8.80%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.22) + 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.