DUST.ST WACC - Weighted Average Cost of Capital

The WACC of Dustin Group AB (DUST.ST) is 9.8%.

The Cost of Equity of Dustin Group AB (DUST.ST) is 9.35%.

The Cost of Debt of Dustin Group AB (DUST.ST) is 13.25%.

	Range	Selected
Cost of equity	6.80% - 11.90%	9.35%
Tax rate	24.00% - 25.10%	24.55%
Cost of debt	4.00% - 22.50%	13.25%
WACC	4.3% - 15.2%	9.8%

WACC

DUST.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.85	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	11.90%

Tax rate	24.00%	25.10%
Debt/Equity ratio	1.97	1.97
Cost of debt	4.00%	22.50%

After-tax WACC	4.3%	15.2%


Selected WACC	9.8%

DUST.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 DUST.ST:

cost_of_equity (9.35%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.85) + 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.