The WACC of Beijer Electronics Group AB (BELE.ST) is 6.4%.
Range | Selected | |
Cost of equity | 5.7% - 8.2% | 6.95% |
Tax rate | 19.3% - 29.9% | 24.6% |
Cost of debt | 4.0% - 10.1% | 7.05% |
WACC | 5.0% - 7.9% | 6.4% |
Category | Low | High |
Long-term bond rate | 0.6% | 1.1% |
Equity market risk premium | 5.2% | 6.2% |
Adjusted beta | 0.98 | 1.05 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.7% | 8.2% |
Tax rate | 19.3% | 29.9% |
Debt/Equity ratio | 0.44 | 0.44 |
Cost of debt | 4.0% | 10.1% |
After-tax WACC | 5.0% | 7.9% |
Selected WACC | 6.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
BELE.ST | Beijer Electronics Group AB | 0.44 | 0.38 | 0.29 |
ALTEV.PA | Envea SA | 0.02 | 0.73 | 0.72 |
AURS.PA | Aures Technologies SA | 1.18 | 0.84 | 0.45 |
ELMN.SW | Elma Electronic AG | 0.09 | 0.1 | 0.1 |
FEV.DE | Fortec Elektronik AG | 0.12 | 0.23 | 0.21 |
PID.PA | Paragon Id SA | 0.96 | -0.34 | -0.2 |
QFR.OL | Q-Free ASA | 0.21 | -0.02 | -0.02 |
STRO.OL | Strongpoint ASA | 0.24 | 0.58 | 0.49 |
SYT.DE | Softing AG | 0.67 | 0.42 | 0.28 |
V6C.DE | Viscom AG | 0.75 | 0.39 | 0.25 |
Low | High | |
Unlevered beta | 0.24 | 0.28 |
Relevered beta | 0.97 | 1.07 |
Adjusted relevered beta | 0.98 | 1.05 |
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 BELE.ST:
cost_of_equity (6.95%) = risk_free_rate (0.85%) + equity_risk_premium (5.70%) * adjusted_beta (0.98) + 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.