HBM Healthcare Investments AG (HBMN.SW) WACC Analysis

As of May 29, 2025, HBM Healthcare Investments AG (HBMN.SW) carries a Weighted Average Cost of Capital (WACC) of 7.1%. WACC reflects the blended rate HBM Healthcare Investments AG must pay to both equity and debt holders.

Within that, the cost of equity is 5.8%, the cost of debt is 4.0%, and the effective tax rate is 16.8%.

Breakdown of WACC Components

• Long-term bond rate: 1.0% – 1.5%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.95 – 1.14
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.08

What It Means for Investors

With a selected WACC of 7.1%, HBM Healthcare Investments AG must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.