24STOR.ST WACC - Weighted Average Cost of Capital
The WACC of 24Storage AB (24STOR.ST) is 5.3%.
| Range | Selected | |
| Cost of equity | 5.0% - 8.4% | 6.7% |
| Tax rate | 23.8% - 32.5% | 28.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 6.1% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 2.3% | 2.8% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.46 | 0.8 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.0% | 8.4% |
| Tax rate | 23.8% | 32.5% |
| Debt/Equity ratio | 0.84 | 0.84 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 6.1% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 24STOR.ST | 24Storage AB | 0.84 | 1.1 | 0.68 |
| B.MI | Bastogi SpA | 1.76 | 0.85 | 0.37 |
| CFS.WA | Centrum Finansowe SA | 0.27 | -0.09 | -0.08 |
| CLG.L | Clipper Logistics PLC | 0.27 | 2.02 | 1.69 |
| EAAS.L | Eenergy Group PLC | 0.41 | 1.16 | 0.89 |
| FIH.L | FIH Group PLC | 0.73 | 0.01 | 0.01 |
| NSH.L | Norish PLC | 0.54 | -0.09 | -0.06 |
| SPS.MC | Service Point Solutions SA | 0.25 | -0.57 | -0.49 |
| SUL.WA | Summa Linguae Technologies SA | 0.08 | 0.29 | 0.28 |
| VIN.WA | Gielda Praw Majatkowych Vindexus SA | 0.4 | 0.26 | 0.2 |
| Low | High | |
| Unlevered beta | 0.12 | 0.32 |
| Relevered beta | 0.19 | 0.7 |
| Adjusted relevered beta | 0.46 | 0.8 |
24STOR.ST'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 24STOR.ST:
cost_of_equity (6.70%) = risk_free_rate (2.55%) + equity_risk_premium (5.20%) * adjusted_beta (0.46) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.