CEVI.ST
CellaVision AB
Price:  
184 
SEK
Volume:  
7,127
Sweden | Health Care Equipment & Supplies

CEVI.ST WACC - Weighted Average Cost of Capital

The WACC of CellaVision AB (CEVI.ST) is 6.3%.

The Cost of Equity of CellaVision AB (CEVI.ST) is 6.35%.
The Cost of Debt of CellaVision AB (CEVI.ST) is 4.25%.

RangeSelected
Cost of equity5.1% - 7.6%6.35%
Tax rate20.4% - 20.5%20.45%
Cost of debt4.0% - 4.5%4.25%
WACC5.1% - 7.6%6.3%
WACC

CEVI.ST WACC calculation

CategoryLowHigh
Long-term bond rate2.5%3.0%
Equity market risk premium5.1%6.1%
Adjusted beta0.510.67
Additional risk adjustments0.0%0.5%
Cost of equity5.1%7.6%
Tax rate20.4%20.5%
Debt/Equity ratio
0.010.01
Cost of debt4.0%4.5%
After-tax WACC5.1%7.6%
Selected WACC6.3%

CEVI.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 CEVI.ST:

cost_of_equity (6.35%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.