CDON.ST WACC - Weighted Average Cost of Capital
The WACC of Cdon AB (CDON.ST) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.0% - 7.4% | 6.2% |
| Tax rate | 20.6% - 20.9% | 20.75% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.0% - 7.4% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.39 | 0.56 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.0% | 7.4% |
| Tax rate | 20.6% | 20.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.0% | 7.4% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CDON.ST | Cdon AB | 0.01 | 0.88 | 0.87 |
| BTBB.DE | SLEEPZ AG | 0.4 | -0.47 | -0.36 |
| ECF.DE | Mountain Alliance AG | 0.15 | -0.02 | -0.02 |
| EPR.MI | Eprice SpA | 2.26 | 0.27 | 0.1 |
| IVS.MI | IVS Group SA | 0.87 | 0.13 | 0.07 |
| LAUR.ST | Lauritz.com Group A/S | 15.79 | 0.66 | 0.05 |
| MYSL.L | MySale Group PLC | 0.11 | 1.53 | 1.41 |
| NELLY.ST | Nelly Group AB (publ) | 0.2 | 1.3 | 1.13 |
| OPN.WA | Oponeo.pl SA | 0.17 | 0.49 | 0.43 |
| PSAT.PA | Passat SA | 0.44 | 0.38 | 0.28 |
| Low | High | |
| Unlevered beta | 0.09 | 0.34 |
| Relevered beta | 0.09 | 0.34 |
| Adjusted relevered beta | 0.39 | 0.56 |
CDON.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 CDON.ST:
cost_of_equity (6.20%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.39) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.