VLRT.SW WACC - Weighted Average Cost of Capital

The WACC of Valartis Group AG (VLRT.SW) is 6.8%.

The Cost of Equity of Valartis Group AG (VLRT.SW) is 7.10%.

The Cost of Debt of Valartis Group AG (VLRT.SW) is 6.75%.

	Range	Selected
Cost of equity	4.90% - 9.30%	7.10%
Tax rate	5.10% - 5.80%	5.45%
Cost of debt	4.00% - 9.50%	6.75%
WACC	4.5% - 9.2%	6.8%

WACC

VLRT.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.77	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	9.30%

Tax rate	5.10%	5.80%
Debt/Equity ratio	0.47	0.47
Cost of debt	4.00%	9.50%

After-tax WACC	4.5%	9.2%


Selected WACC	6.8%

VLRT.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 VLRT.SW:

cost_of_equity (7.10%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.77) + 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.