The Swatch Group AGSWGAF 71 WACC % is 3.79% as of Jun. 26, 2026, which is 35% below its 10-year median of 5.80. GuruFocus rates SWGAF with a GF Score™ of 71/100 and a GF Value™ of $171.66 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,143 Retail - Cyclical companies, The Swatch Group AG ranks better than 65% on this metric.
As of today (2026-06-26), The Swatch Group AG's weighted average cost of capital is 3.79%%. The Swatch Group AG's ROIC % is 0.18% (calculated using TTM income statement data).
The Swatch Group AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
The Swatch Group AG (OTCPK:SWGAF) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, The Swatch Group AG's weighted average cost of capital is 3.79%%. The Swatch Group AG's ROIC % is 0.18% (calculated using TTM income statement data).
The Swatch Group AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
The Swatch Group AG WACC % Historical Data
* Premium members only.
The historical data trend for The Swatch Group AG's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Luxury Goods subindustry, The Swatch Group AG's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Swatch Group AG WACC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Swatch Group AG's WACC % distribution charts can be found below:
* The bar in red indicates where The Swatch Group AG's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, The Swatch Group AG's market capitalization (E) is $12916.803 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, The Swatch Group AG's latest one-year semi-annual average Book Value of Debt (D) is $96.9883 Mil.
a) weight of equity = E / (E + D) = 12916.803 / (12916.803 + 96.9883) = 0.9925
b) weight of debt = D / (E + D) = 96.9883 / (12916.803 + 96.9883) = 0.0075
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 0.44%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. The Swatch Group AG's beta is 0.5616.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 0.44% + 0.5616 * 6% = 3.8096%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, The Swatch Group AG's interest expense (positive number) was $4.995 Mil. Its total Book Value of Debt (D) is $96.9883 Mil.
Cost of Debt = 4.995 / 96.9883 = 5.1501%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 165.513 / 196.457 = 84.25%.
The Swatch Group AG's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9925
*
3.8096%
+
0.0075
*
5.1501%
*
(1 - 84.25%)
=
3.79%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Swatch Group AG (SWGAF) has a WACC % of 3.79% as of Jun. 26, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on The Swatch Group AG and its competitors. This is 35% below median its historical median of 5.80. According to the industry distribution chart, The Swatch Group AG ranks #400 out of 1143 companies in the Retail - Cyclical industry, placing it in the top 35%.
Is The Swatch Group AG's WACC % too high?
The Swatch Group AG's current WACC % of 3.79% is 35% below median its 10-year median of 5.80. The Retail - Cyclical industry median WACC % is 7.58. The Swatch Group AG's value of 3.79% is 50% below this industry median. Based on the distribution chart, The Swatch Group AG ranks #400 out of 1143 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, The Swatch Group AG has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Swatch Group AG's WACC % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, The Swatch Group AG ranks #400 out of 1143 companies for WACC %. This puts The Swatch Group AG in the upper half of its industry. The industry median WACC % is 7.58. The Swatch Group AG's value of 3.79% is 50% below this benchmark. While the company's 10-year median is 5.80 vs. the industry median of 7.58, The Swatch Group AG has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Retail - Cyclical company?
The median WACC % among Retail - Cyclical companies is 7.58, based on 1,143 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Swatch Group AG's current WACC % of 3.79% is 50% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on The Swatch Group AG and its competitors. For the Retail - Cyclical industry, the median WACC % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Swatch Group AG's current WACC % is 3.79%, which is 35% below median its own 10-year median of 5.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Swatch Group AG stock overvalued right now?
Based on GuruFocus' analysis, The Swatch Group AG (SWGAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $171.66, compared to a current price of $257.43 — trading 50% above its estimated fair value. The current WACC % is 3.79%, which is 35% below median its 10-year median of 5.80 and 50% below the Retail - Cyclical industry median of 7.58. The Swatch Group AG's overall GF Score™ is 71/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For The Swatch Group AG (SWGAF), the current WACC % is 3.79% as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Swatch Group AG (SWGAF) Overvalued in 2026?
Based on GuruFocus' analysis, The Swatch Group AG stock appears to be overvalued.
The current stock price of $257.43 is trading 50% above its estimated GF Value™ of $171.66.
GuruFocus considers The Swatch Group AG to be Significantly Overvalued.
Key valuation signals for SWGAF:
WACC %: 3.79% (35% below median its 10-year median of 5.80)
GF Value™: $171.66 vs. price of $257.43 (50% above fair value)
Industry Position: 50% below the Retail - Cyclical median (#400 of 1143)
No single metric tells the full story. See the SWGAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swatch Group's biggest brands are Omega (number two or three in its category), Breguet, Tissot (the leader in midrange Swiss watches), and Swatch. The company employs over 32,000 people, half of them in Switzerland. We estimate Omega and Longines to be the group's most profitable brands.
71GF Score
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WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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