BBROOM.ST WACC - Weighted Average Cost of Capital

The WACC of New Bubbleroom Sweden AB (BBROOM.ST) is 7.8%.

The Cost of Equity of New Bubbleroom Sweden AB (BBROOM.ST) is 7.10%.

The Cost of Debt of New Bubbleroom Sweden AB (BBROOM.ST) is 10.50%.

	Range	Selected
Cost of equity	6.00% - 8.20%	7.10%
Tax rate	0.30% - 0.60%	0.45%
Cost of debt	7.00% - 14.00%	10.50%
WACC	6.2% - 9.4%	7.8%

WACC

BBROOM.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.68	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	8.20%

Tax rate	0.30%	0.60%
Debt/Equity ratio	0.25	0.25
Cost of debt	7.00%	14.00%

After-tax WACC	6.2%	9.4%


Selected WACC	7.8%

BBROOM.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 BBROOM.ST:

cost_of_equity (7.10%) = 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.