Elma Electronic AG (ELMN.SW) WACC Analysis

As of May 23, 2025, Elma Electronic AG (ELMN.SW) carries a Weighted Average Cost of Capital (WACC) of 4.4%. WACC reflects the blended rate Elma Electronic AG must pay to both equity and debt holders.

Within that, the cost of equity is 3.5%, the cost of debt is 4.0%, and the effective tax rate is 13.8%.

Breakdown of WACC Components

• Long-term bond rate: 1.0% – 1.5%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.49 – 0.57
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.09

What It Means for Investors

With a selected WACC of 4.4%, Elma Electronic AG must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.