METN.SW WACC - Weighted Average Cost of Capital

The WACC of Metall Zug AG (METN.SW) is 6.1%.

The Cost of Equity of Metall Zug AG (METN.SW) is 6.60%.

The Cost of Debt of Metall Zug AG (METN.SW) is 5.50%.

	Range	Selected
Cost of equity	5.10% - 8.10%	6.60%
Tax rate	7.00% - 9.40%	8.20%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.6% - 7.5%	6.1%

WACC

METN.SW WACC calculation

Category	Low	High

Long-term bond rate	1.0%	1.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.71	0.93

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.10%	8.10%

Tax rate	7.00%	9.40%
Debt/Equity ratio	0.49	0.49
Cost of debt	4.00%	7.00%

After-tax WACC	4.6%	7.5%


Selected WACC	6.1%

METN.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 METN.SW:

cost_of_equity (6.60%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.