11B.WA WACC - Weighted Average Cost of Capital
The WACC of 11 Bit Studios SA (11B.WA) is 9.5%.
| Range | Selected | |
| Cost of equity | 7.9% - 11.2% | 9.55% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 4.1% - 6.1% | 5.1% |
| WACC | 7.9% - 11.1% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.38 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 11.2% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.1% | 6.1% |
| After-tax WACC | 7.9% | 11.1% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 11B.WA | 11 Bit Studios SA | 0.01 | 0.8 | 0.79 |
| CRJ.WA | Creepy Jar SA | 0 | 0.43 | 0.43 |
| FOR.WA | Forever Entertainment SA | 0.01 | 0.05 | 0.05 |
| GCOR.ST | Gaming Corps AB | 0.02 | -0.32 | -0.32 |
| GMR.L | Gaming Realms PLC | 0.01 | -0.24 | -0.24 |
| MAGI.ST | MAG Interactive AB (publ) | 0.05 | 0.56 | 0.54 |
| MOV.WA | Movie Games SA | 0.01 | -0.28 | -0.28 |
| NITRO.ST | Nitro Games Oyj | 0.9 | 0.17 | 0.1 |
| PCF.WA | PCF Group SA | 0.34 | 0.99 | 0.78 |
| STAR B.ST | Starbreeze AB | 0.07 | 0.54 | 0.51 |
| Low | High | |
| Unlevered beta | 0.08 | 0.46 |
| Relevered beta | 0.07 | 0.46 |
| Adjusted relevered beta | 0.38 | 0.64 |
11B.WA'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 11B.WA:
cost_of_equity (9.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.38) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.