LOGN.SW WACC - Weighted Average Cost of Capital

The WACC of Logitech International SA (LOGN.SW) is 5.4%.

The Cost of Equity of Logitech International SA (LOGN.SW) is 6.50%.

The Cost of Debt of Logitech International SA (LOGN.SW) is 5.00%.

	Range	Selected
Cost of equity	4.60% - 8.40%	6.50%
Tax rate	12.60% - 15.10%	13.85%
Cost of debt	5.00% - 5.00%	5.00%
WACC	4.5% - 6.3%	5.4%

WACC

LOGN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.7	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.60%	8.40%

Tax rate	12.60%	15.10%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	4.5%	6.3%


Selected WACC	5.4%

LOGN.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 LOGN.SW:

cost_of_equity (6.50%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.7) + 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.