EAST.ST WACC - Weighted Average Cost of Capital
The WACC of Eastnine AB (publ) (EAST.ST) is 5.7%.
| Range | Selected | |
| Cost of equity | 5.7% - 8.0% | 6.85% |
| Tax rate | 4.4% - 7.3% | 5.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 6.2% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.62 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 8.0% |
| Tax rate | 4.4% | 7.3% |
| Debt/Equity ratio | 1.18 | 1.18 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 6.2% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EAST.ST | Eastnine AB (publ) | 1.18 | 0.28 | 0.13 |
| ADJ.DE | Adler Group SA | 145.37 | 0.54 | 0 |
| ENTRA.OL | Entra ASA | 1.38 | 0.53 | 0.23 |
| GRI.L | Grainger PLC | 0.99 | 0.84 | 0.43 |
| HUFV A.ST | Hufvudstaden AB | 0.44 | 0.24 | 0.17 |
| IIA.VI | Immofinanz AG | 1.93 | 0.88 | 0.31 |
| SPI.VI | S Immo AG | 1.3 | 0.6 | 0.27 |
| TLG.DE | TLG Immobilien AG | 0.32 | 1.24 | 0.95 |
| VGP.BR | VGP NV | 0.91 | 0.76 | 0.41 |
| WIHL.ST | Wihlborgs Fastigheter AB | 1.01 | 0.16 | 0.08 |
| Low | High | |
| Unlevered beta | 0.2 | 0.28 |
| Relevered beta | 0.43 | 0.61 |
| Adjusted relevered beta | 0.62 | 0.74 |
EAST.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 EAST.ST:
cost_of_equity (6.85%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.62) + 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.