ENRO.ST WACC - Weighted Average Cost of Capital
The WACC of Eniro AB (ENRO.ST) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.1% - 9.4% | 7.25% |
| Tax rate | 14.2% - 24.4% | 19.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 9.0% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.5 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 9.4% |
| Tax rate | 14.2% | 24.4% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 9.0% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ENRO.ST | Eniro AB | 0.08 | 0.77 | 0.72 |
| BST.DE | Bastei Luebbe AG | 0.06 | 0.06 | 0.05 |
| CLE.MI | Class Editori SpA | 1.86 | -0.02 | -0.01 |
| DOBUR.IS | Dogan Burda Dergi Yayincilik ve Pazarlama AS | 0.01 | 1.4 | 1.38 |
| EEG1T.TL | Ekspress Grupp AS | 0.88 | 0.58 | 0.34 |
| HURGZ.IS | Hurriyet Gazetecilik ve Matbaacilik AS | 0.02 | 1.18 | 1.16 |
| IHYAY.IS | Ihlas Yayin Holding AS | 0.17 | 1.3 | 1.14 |
| PUMU.HE | PunaMusta Media Oyj | 3.18 | 0.34 | 0.09 |
| QRT.L | Quarto Group Inc | 0.27 | -0.21 | -0.17 |
| SBV.SG | Schwabenverlag AG | 0.13 | 1.62 | 1.46 |
| Low | High | |
| Unlevered beta | 0.24 | 0.89 |
| Relevered beta | 0.25 | 0.96 |
| Adjusted relevered beta | 0.5 | 0.97 |
ENRO.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 ENRO.ST:
cost_of_equity (7.25%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.5) + 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.