CONTX.OL WACC - Weighted Average Cost of Capital
The WACC of ContextVision AB (CONTX.OL) is 7.2%.
| Range | Selected | |
| Cost of equity | 5.9% - 8.8% | 7.35% |
| Tax rate | 20.7% - 20.9% | 20.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.8% - 8.6% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.5 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 8.8% |
| Tax rate | 20.7% | 20.9% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.8% | 8.6% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CONTX.OL | ContextVision AB | 0.03 | 0.55 | 0.54 |
| ALMDT.PA | Median Technologies SA | 0.43 | -0.49 | -0.36 |
| COG.L | Cambridge Cognition Holdings PLC | 0 | 1.09 | 1.09 |
| FRISQ.ST | Frisq Holding AB (publ) | 0.14 | 0.73 | 0.66 |
| INHC.L | Induction Healthcare Group PLC | 0.01 | -0.81 | -0.81 |
| INS.L | Instem PLC | 0.01 | 0.56 | 0.55 |
| MDA.WA | Medapp SA | 0.01 | 0.64 | 0.63 |
| PSKY.OL | Patientsky Group AS | 0.46 | -0.25 | -0.18 |
| SDT.PA | Visiodent SA | 0.19 | -0.21 | -0.18 |
| SNT.WA | Synektik SA | 0.01 | 0.62 | 0.61 |
| Low | High | |
| Unlevered beta | 0.25 | 0.58 |
| Relevered beta | 0.25 | 0.6 |
| Adjusted relevered beta | 0.5 | 0.73 |
CONTX.OL'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 CONTX.OL:
cost_of_equity (7.35%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.5) + 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.