VALN.SW WACC - Weighted Average Cost of Capital

The WACC of Valora Holding AG (VALN.SW) is 7.4%.

The Cost of Equity of Valora Holding AG (VALN.SW) is 7.95%.

The Cost of Debt of Valora Holding AG (VALN.SW) is 8.40%.

	Range	Selected
Cost of equity	6.40% - 9.50%	7.95%
Tax rate	11.90% - 17.90%	14.90%
Cost of debt	4.00% - 12.80%	8.40%
WACC	4.8% - 10.0%	7.4%

WACC

VALN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.06	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	9.50%

Tax rate	11.90%	17.90%
Debt/Equity ratio	1.21	1.21
Cost of debt	4.00%	12.80%

After-tax WACC	4.8%	10.0%


Selected WACC	7.4%

VALN.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 VALN.SW:

cost_of_equity (7.95%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.06) + 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.