DRIL.ST
Drillcon AB
Price:  
4.64 
SEK
Volume:  
1,033.00
Sweden | Metals & Mining
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DRIL.ST WACC - Weighted Average Cost of Capital

The WACC of Drillcon AB (DRIL.ST) is 7.4%.

The Cost of Equity of Drillcon AB (DRIL.ST) is 7.95%.
The Cost of Debt of Drillcon AB (DRIL.ST) is 8.25%.

Range Selected
Cost of equity 6.70% - 9.20% 7.95%
Tax rate 22.10% - 24.60% 23.35%
Cost of debt 6.10% - 10.40% 8.25%
WACC 6.1% - 8.8% 7.4%
WACC

DRIL.ST WACC calculation

Category Low High
Long-term bond rate 2.5% 3.0%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.83 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 9.20%
Tax rate 22.10% 24.60%
Debt/Equity ratio 0.47 0.47
Cost of debt 6.10% 10.40%
After-tax WACC 6.1% 8.8%
Selected WACC 7.4%

DRIL.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 DRIL.ST:

cost_of_equity (7.95%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.83) + 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.