DOM.ST WACC - Weighted Average Cost of Capital

The WACC of Dometic Group AB (publ) (DOM.ST) is 7.0%.

The Cost of Equity of Dometic Group AB (publ) (DOM.ST) is 12.40%.

The Cost of Debt of Dometic Group AB (publ) (DOM.ST) is 6.15%.

	Range	Selected
Cost of equity	10.60% - 14.20%	12.40%
Tax rate	26.80% - 27.80%	27.30%
Cost of debt	4.50% - 7.80%	6.15%
WACC	5.7% - 8.4%	7.0%

WACC

DOM.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.59	1.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	14.20%

Tax rate	26.80%	27.80%
Debt/Equity ratio	2.08	2.08
Cost of debt	4.50%	7.80%

After-tax WACC	5.7%	8.4%


Selected WACC	7.0%

DOM.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 DOM.ST:

cost_of_equity (12.40%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (1.59) + 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.