Compagnie Financiere Tradition SA (CFT.SW) WACC Analysis

As of May 28, 2025, Compagnie Financiere Tradition SA (CFT.SW) carries a Weighted Average Cost of Capital (WACC) of 4.8%. WACC reflects the blended rate Compagnie Financiere Tradition SA must pay to both equity and debt holders.

Within that, the cost of equity is 3.9%, the cost of debt is 4.0%, and the effective tax rate is 17.7%.

Breakdown of WACC Components

• Long-term bond rate: 1.0% – 1.5%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.58 – 0.69
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.18

What It Means for Investors

With a selected WACC of 4.8%, Compagnie Financiere Tradition SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.