BORG.ST WACC - Weighted Average Cost of Capital
The WACC of Bjorn Borg AB (BORG.ST) is 5.5%.
| Range | Selected | |
| Cost of equity | 4.7% - 6.3% | 5.5% |
| Tax rate | 19.6% - 20.7% | 20.15% |
| Cost of debt | 4.0% - 6.2% | 5.1% |
| WACC | 4.7% - 6.3% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.43 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 6.3% |
| Tax rate | 19.6% | 20.7% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 6.2% |
| After-tax WACC | 4.7% | 6.3% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BORG.ST | Bjorn Borg AB | 0.04 | 0.59 | 0.57 |
| ALTAN.PA | Le Tanneur et Cie SA | 0.31 | 0.84 | 0.68 |
| CDL.WA | CDRL SA | 1.3 | 0.21 | 0.1 |
| CSP.MI | CSP International Fashion Group SpA | 1.53 | -0.02 | -0.01 |
| DPT.PA | St Dupont SA | 0.11 | 0.2 | 0.19 |
| EAH.WA | Esotiq & Henderson SA | 0.4 | -0.11 | -0.08 |
| ELB.DE | elumeo SE | 0.27 | 0.59 | 0.48 |
| FED.MI | Giorgio Fedon & Figli SpA | 0.7 | 0.23 | 0.15 |
| FPE.MI | Fope SpA | 0.06 | 0.15 | 0.15 |
| PTR.MI | Pattern SpA | 0.36 | 0.25 | 0.19 |
| Low | High | |
| Unlevered beta | 0.15 | 0.19 |
| Relevered beta | 0.15 | 0.19 |
| Adjusted relevered beta | 0.43 | 0.46 |
BORG.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 BORG.ST:
cost_of_equity (5.50%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.43) + 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.