BELE.ST
Beijer Electronics Group AB
Price:  
122.2 
Beijer Electronics Group
Volume:  
14,500
Sweden | Electronic Equipment, Instruments & Components

BELE.ST WACC - Weighted Average Cost of Capital

The WACC of Beijer Electronics Group AB (BELE.ST) is 6.4%.

The Cost of Equity of Beijer Electronics Group AB (BELE.ST) is 6.95%.
The Cost of Debt of Beijer Electronics Group AB (BELE.ST) is 7.05%.

RangeSelected
Cost of equity5.7% - 8.2%6.95%
Tax rate19.3% - 29.9%24.6%
Cost of debt4.0% - 10.1%7.05%
WACC5.0% - 7.9%6.4%
WACC

BELE.ST WACC calculation

CategoryLowHigh
Long-term bond rate0.6%1.1%
Equity market risk premium5.2%6.2%
Adjusted beta0.981.05
Additional risk adjustments0.0%0.5%
Cost of equity5.7%8.2%
Tax rate19.3%29.9%
Debt/Equity ratio
0.440.44
Cost of debt4.0%10.1%
After-tax WACC5.0%7.9%
Selected WACC6.4%

BELE.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 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.