COIC.ST WACC - Weighted Average Cost of Capital
The WACC of Concentric AB (COIC.ST) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.4% - 9.7% | 8.05% |
| Tax rate | 20.4% - 20.8% | 20.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 9.1% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.77 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 9.7% |
| Tax rate | 20.4% | 20.8% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 9.1% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| COIC.ST | Concentric AB | 0.13 | 1.47 | 1.34 |
| ASUZU.IS | Anadolu Isuzu Otomotiv Sanayii ve Ticaret AS | 0.23 | 1.56 | 1.32 |
| JANTS.IS | Jantsa Jant Sanayi ve Ticaret AS | 0.01 | 0.85 | 0.85 |
| OTKAR.IS | Otokar Otomotiv ve Savunma Sanayi AS | 0.19 | 1.22 | 1.06 |
| RABA.BD | Raba Jarmuipari Holding Nyrt | 1.15 | 0.41 | 0.21 |
| ROBIT.HE | Robit Plc | 1 | 0.74 | 0.41 |
| S4A.DE | SMT Scharf AG | 0.34 | 0.91 | 0.72 |
| SOM.L | Somero Enterprises Inc | 0 | 0.4 | 0.4 |
| TES.MI | Tesmec SpA | 5.75 | 0.36 | 0.07 |
| TMSN.IS | Tumosan Motor ve Traktor Sanayi AS | 0.17 | 1.33 | 1.18 |
| Low | High | |
| Unlevered beta | 0.6 | 0.93 |
| Relevered beta | 0.66 | 1.03 |
| Adjusted relevered beta | 0.77 | 1.02 |
COIC.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 COIC.ST:
cost_of_equity (8.05%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.77) + 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.