FASTAT.ST WACC - Weighted Average Cost of Capital

The WACC of Fastator AB publ (FASTAT.ST) is 6.3%.

The Cost of Equity of Fastator AB publ (FASTAT.ST) is 10.55%.

The Cost of Debt of Fastator AB publ (FASTAT.ST) is 6.60%.

	Range	Selected
Cost of equity	9.00% - 12.10%	10.55%
Tax rate	7.10% - 9.60%	8.35%
Cost of debt	6.20% - 7.00%	6.60%
WACC	5.9% - 6.6%	6.3%

WACC

FASTAT.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.27	1.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	12.10%

Tax rate	7.10%	9.60%
Debt/Equity ratio	21.45	21.45
Cost of debt	6.20%	7.00%

After-tax WACC	5.9%	6.6%


Selected WACC	6.3%

FASTAT.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 FASTAT.ST:

cost_of_equity (10.55%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (1.27) + 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.