ATT.ST WACC - Weighted Average Cost of Capital

The WACC of Attendo AB (publ) (ATT.ST) is 5.5%.

The Cost of Equity of Attendo AB (publ) (ATT.ST) is 6.90%.

The Cost of Debt of Attendo AB (publ) (ATT.ST) is 5.90%.

	Range	Selected
Cost of equity	5.60% - 8.20%	6.90%
Tax rate	14.70% - 22.00%	18.35%
Cost of debt	4.00% - 7.80%	5.90%
WACC	4.2% - 6.8%	5.5%

WACC

ATT.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.6	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	8.20%

Tax rate	14.70%	22.00%
Debt/Equity ratio	1.69	1.69
Cost of debt	4.00%	7.80%

After-tax WACC	4.2%	6.8%


Selected WACC	5.5%

ATT.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 ATT.ST:

cost_of_equity (6.90%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.6) + 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.