ADVE.ST WACC - Weighted Average Cost of Capital
The WACC of Advenica AB (publ) (ADVE.ST) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.0% - 7.9% | 6.45% |
| Tax rate | 0.8% - 1.8% | 1.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.0% - 7.9% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.39 | 0.64 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.0% | 7.9% |
| Tax rate | 0.8% | 1.8% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.0% | 7.9% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ADVE.ST | Advenica AB (publ) | 0.02 | 0.98 | 0.96 |
| BITTI.HE | Bittium Oyj | 0.09 | 0.49 | 0.45 |
| ILYDA.AT | Ilyda SA | 0.03 | 0.86 | 0.84 |
| KENH.ST | Kentima Holding AB (publ) | 0.1 | 0.62 | 0.56 |
| KULCSSOFT.BD | Kulcs Soft Nyrt | 0.02 | -0.16 | -0.15 |
| LSI.WA | LSI Software SA | 0.11 | 0.51 | 0.46 |
| PNT.WA | PointPack.pl SA | 0.53 | -0.13 | -0.08 |
| PROAC.PA | Proactis SA | 0.05 | -0.5 | -0.48 |
| QNT.WA | Quantum Software SA | 0.06 | 0.06 | 0.05 |
| STAR.L | Starcom PLC | 1.13 | 0.26 | 0.12 |
| Low | High | |
| Unlevered beta | 0.1 | 0.45 |
| Relevered beta | 0.09 | 0.46 |
| Adjusted relevered beta | 0.39 | 0.64 |
ADVE.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 ADVE.ST:
cost_of_equity (6.45%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.39) + 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.