EWRK.ST WACC - Weighted Average Cost of Capital

The WACC of Ework Group AB (EWRK.ST) is 7.2%.

The Cost of Equity of Ework Group AB (EWRK.ST) is 7.60%.

The Cost of Debt of Ework Group AB (EWRK.ST) is 4.30%.

	Range	Selected
Cost of equity	6.40% - 8.80%	7.60%
Tax rate	20.80% - 21.00%	20.90%
Cost of debt	4.00% - 4.60%	4.30%
WACC	6.1% - 8.3%	7.2%

WACC

EWRK.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.77	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	8.80%

Tax rate	20.80%	21.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.00%	4.60%

After-tax WACC	6.1%	8.3%


Selected WACC	7.2%

EWRK.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 EWRK.ST:

cost_of_equity (7.60%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.77) + 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.