VZUG.SW WACC - Weighted Average Cost of Capital
The WACC of V-ZUG Holding AG (VZUG.SW) is 5.0%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.3% | 6.3% |
| Tax rate | 12.9% - 15.4% | 14.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 5.6% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 1.0% | 1.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.76 | 0.8 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.3% | 7.3% |
| Tax rate | 12.9% | 15.4% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 5.6% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VZUG.SW | V-ZUG Holding AG | 1.05 | 0.82 | 0.43 |
| ALMGI.PA | Mg International SA | 0.11 | 0.41 | 0.37 |
| AMC.WA | Amica SA | 0.49 | 0.54 | 0.38 |
| EIN3.DE | Einhell Germany AG | 0.65 | 0.56 | 0.36 |
| ELC.MI | Elica SpA | 1.02 | 0.61 | 0.32 |
| EM.MI | Emak SpA | 1.93 | 0.79 | 0.3 |
| IHEVA.IS | Ihlas Ev Aletleri Imalat Sanayi ve Ticaret AS | 0.03 | 0.7 | 0.68 |
| INDB.MI | Indel B SpA | 0.24 | 0.29 | 0.24 |
| SAB.MI | Sabaf SpA | 0.52 | 0.29 | 0.2 |
| SILVR.IS | Silverline Endustri ve Ticaret AS | 0.14 | 1.93 | 1.72 |
| TOA.WA | Toya SA | 0.1 | 0.8 | 0.74 |
| Low | High | |
| Unlevered beta | 0.36 | 0.38 |
| Relevered beta | 0.64 | 0.7 |
| Adjusted relevered beta | 0.76 | 0.8 |
VZUG.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 VZUG.SW:
cost_of_equity (6.30%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.76) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.