WIHN.SW
Wisekey International Holding AG
Price:  
6.60 
CHF
Volume:  
1,411.00
Switzerland | Semiconductors & Semiconductor Equipment
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WIHN.SW WACC - Weighted Average Cost of Capital

The WACC of Wisekey International Holding AG (WIHN.SW) is 5.1%.

The Cost of Equity of Wisekey International Holding AG (WIHN.SW) is 5.15%.
The Cost of Debt of Wisekey International Holding AG (WIHN.SW) is 5.00%.

Range Selected
Cost of equity 4.30% - 6.00% 5.15%
Tax rate 0.90% - 5.20% 3.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.4% - 5.8% 5.1%
WACC

WIHN.SW WACC calculation

Category Low High
Long-term bond rate 1.0% 1.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.37 0.42
Additional risk adjustments 1.5% 2.0%
Cost of equity 4.30% 6.00%
Tax rate 0.90% 5.20%
Debt/Equity ratio 0.17 0.17
Cost of debt 5.00% 5.00%
After-tax WACC 4.4% 5.8%
Selected WACC 5.1%

WIHN.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 WIHN.SW:

cost_of_equity (5.15%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + risk_adjustments (1.75%)

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