AWRD.ST
Awardit AB (publ)
Price:  
133.00 
SEK
Volume:  
1,841,494.00
Sweden | Media
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AWRD.ST WACC - Weighted Average Cost of Capital

The WACC of Awardit AB (publ) (AWRD.ST) is 6.3%.

The Cost of Equity of Awardit AB (publ) (AWRD.ST) is 6.50%.
The Cost of Debt of Awardit AB (publ) (AWRD.ST) is 7.65%.

Range Selected
Cost of equity 5.40% - 7.60% 6.50%
Tax rate 22.90% - 31.10% 27.00%
Cost of debt 7.00% - 8.30% 7.65%
WACC 5.4% - 7.3% 6.3%
WACC

AWRD.ST WACC calculation

Category Low High
Long-term bond rate 2.5% 3.0%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.56 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 7.60%
Tax rate 22.90% 31.10%
Debt/Equity ratio 0.2 0.2
Cost of debt 7.00% 8.30%
After-tax WACC 5.4% 7.3%
Selected WACC 6.3%

AWRD.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 AWRD.ST:

cost_of_equity (6.50%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.