BONG.ST WACC - Weighted Average Cost of Capital

The WACC of Bong AB (BONG.ST) is 7.8%.

The Cost of Equity of Bong AB (BONG.ST) is 13.75%.

The Cost of Debt of Bong AB (BONG.ST) is 6.95%.

	Range	Selected
Cost of equity	10.00% - 17.50%	13.75%
Tax rate	20.60% - 20.90%	20.75%
Cost of debt	6.10% - 7.80%	6.95%
WACC	6.3% - 9.3%	7.8%

WACC

BONG.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.46	2.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	17.50%

Tax rate	20.60%	20.90%
Debt/Equity ratio	2.61	2.61
Cost of debt	6.10%	7.80%

After-tax WACC	6.3%	9.3%


Selected WACC	7.8%

BONG.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 BONG.ST:

cost_of_equity (13.75%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (1.46) + 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.