ZWM.SW WACC - Weighted Average Cost of Capital

The WACC of Zwahlen et Mayr SA (ZWM.SW) is 5.3%.

The Cost of Equity of Zwahlen et Mayr SA (ZWM.SW) is 5.65%.

The Cost of Debt of Zwahlen et Mayr SA (ZWM.SW) is 5.50%.

	Range	Selected
Cost of equity	4.30% - 7.00%	5.65%
Tax rate	14.10% - 14.50%	14.30%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.0% - 6.6%	5.3%

WACC

ZWM.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.36	0.58

Additional risk adjustments	1.5%	2.0%
Cost of equity	4.30%	7.00%

Tax rate	14.10%	14.50%
Debt/Equity ratio	0.64	0.64
Cost of debt	4.00%	7.00%

After-tax WACC	4.0%	6.6%


Selected WACC	5.3%

ZWM.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 ZWM.SW:

cost_of_equity (5.65%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.36) + 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.