BILL.ST WACC - Weighted Average Cost of Capital
The WACC of BillerudKorsnas AB (publ) (BILL.ST) is 6.5%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.5% | 7.5% |
| Tax rate | 21.4% - 22.0% | 21.7% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.7% - 7.3% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.77 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.5% |
| Tax rate | 21.4% | 22.0% |
| Debt/Equity ratio | 0.3 | 0.3 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.7% | 7.3% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BILL.ST | BillerudKorsnas AB (publ) | 0.3 | 0.61 | 0.5 |
| HART.CO | Broedrene Hartmann A/S | 0.45 | 0.23 | 0.17 |
| HUH1V.HE | Huhtamaki Oyj | 0.44 | 0.86 | 0.64 |
| KARTN.IS | Kartonsan Karton Sanayi ve Ticaret AS | 0 | 0.63 | 0.63 |
| MMK.VI | Mayr Melnhof Karton AG | 1.06 | 0.38 | 0.21 |
| OLMIP.IS | Olmuksan International Paper Ambalaj Sanayi ve Ticaret AS | 0.08 | 1.06 | 0.99 |
| RM.MI | Reno De Medici SpA | 0.13 | 0.62 | 0.56 |
| SIGN.SW | SIG Combibloc Group AG | 0.37 | 0.73 | 0.57 |
| TFF.PA | Tonnellerie Francois Freres SA | 0.71 | 0.25 | 0.16 |
| TIRE.IS | Mondi Tire Kutsan Kagit ve Ambalaj Sanayi AS | 0.15 | 1.3 | 1.17 |
| Low | High | |
| Unlevered beta | 0.54 | 0.59 |
| Relevered beta | 0.66 | 0.73 |
| Adjusted relevered beta | 0.77 | 0.82 |
BILL.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 BILL.ST:
cost_of_equity (7.50%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.77) + 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.