DIST.ST WACC - Weighted Average Cost of Capital

The WACC of DistIT AB (DIST.ST) is 9.0%.

The Cost of Equity of DistIT AB (DIST.ST) is 12.20%.

The Cost of Debt of DistIT AB (DIST.ST) is 8.25%.

	Range	Selected
Cost of equity	9.80% - 14.60%	12.20%
Tax rate	6.10% - 11.10%	8.60%
Cost of debt	7.00% - 9.50%	8.25%
WACC	7.6% - 10.5%	9.0%

WACC

DIST.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.43	1.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	14.60%

Tax rate	6.10%	11.10%
Debt/Equity ratio	2.05	2.05
Cost of debt	7.00%	9.50%

After-tax WACC	7.6%	10.5%


Selected WACC	9.0%

DIST.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 DIST.ST:

cost_of_equity (12.20%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (1.43) + 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.