VILN.SW WACC - Weighted Average Cost of Capital

The WACC of Villars Holding SA (VILN.SW) is 5.8%.

The Cost of Equity of Villars Holding SA (VILN.SW) is 6.95%.

The Cost of Debt of Villars Holding SA (VILN.SW) is 5.50%.

	Range	Selected
Cost of equity	5.40% - 8.50%	6.95%
Tax rate	28.10% - 32.20%	30.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.5% - 7.1%	5.8%

WACC

VILN.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	0.65

Additional risk adjustments	2.5%	3.0%
Cost of equity	5.40%	8.50%

Tax rate	28.10%	32.20%
Debt/Equity ratio	0.58	0.58
Cost of debt	4.00%	7.00%

After-tax WACC	4.5%	7.1%


Selected WACC	5.8%

VILN.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 VILN.SW:

cost_of_equity (6.95%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.39) + risk_adjustments (2.75%)

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