BOUL.ST WACC - Weighted Average Cost of Capital

The WACC of Boule Diagnostics AB (BOUL.ST) is 8.1%.

The Cost of Equity of Boule Diagnostics AB (BOUL.ST) is 19.70%.

The Cost of Debt of Boule Diagnostics AB (BOUL.ST) is 7.30%.

	Range	Selected
Cost of equity	14.60% - 24.80%	19.70%
Tax rate	18.60% - 27.00%	22.80%
Cost of debt	6.80% - 7.80%	7.30%
WACC	7.1% - 9.0%	8.1%

WACC

BOUL.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2.36	3.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	24.80%

Tax rate	18.60%	27.00%
Debt/Equity ratio	4.72	4.72
Cost of debt	6.80%	7.80%

After-tax WACC	7.1%	9.0%


Selected WACC	8.1%

BOUL.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 BOUL.ST:

cost_of_equity (19.70%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (2.36) + 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.