AVEN.ST
Avensia AB
Price:  
11.6 
SEK
Volume:  
19,816
Sweden | Software

AVEN.ST WACC - Weighted Average Cost of Capital

The WACC of Avensia AB (AVEN.ST) is 6.5%.

The Cost of Equity of Avensia AB (AVEN.ST) is 6.95%.
The Cost of Debt of Avensia AB (AVEN.ST) is 5%.

RangeSelected
Cost of equity6.0% - 7.9%6.95%
Tax rate17.0% - 21.8%19.4%
Cost of debt5.0% - 5.0%5%
WACC5.7% - 7.4%6.5%
WACC

AVEN.ST WACC calculation

CategoryLowHigh
Long-term bond rate2.5%3.0%
Equity market risk premium5.1%6.1%
Adjusted beta0.680.72
Additional risk adjustments0.0%0.5%
Cost of equity6.0%7.9%
Tax rate17.0%21.8%
Debt/Equity ratio
0.160.16
Cost of debt5.0%5.0%
After-tax WACC5.7%7.4%
Selected WACC6.5%

AVEN.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 AVEN.ST:

cost_of_equity (6.95%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.68) + 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.