GHP.ST WACC - Weighted Average Cost of Capital
The WACC of GHP Specialty Care AB (GHP.ST) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.9% | 6.7% |
| Tax rate | 22.0% - 23.9% | 22.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.1% - 7.2% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 0.6% | 1.1% |
| Equity market risk premium | 5.2% | 6.2% |
| Adjusted beta | 0.94 | 1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.9% |
| Tax rate | 22.0% | 23.9% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.1% | 7.2% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GHP.ST | GHP Specialty Care AB | 0.2 | 1.11 | 0.96 |
| EUK.MI | EuKedos SpA | 5.81 | 0.2 | 0.04 |
| FEEL.ST | Feelgood Svenska AB (publ) | 0.29 | 0.95 | 0.77 |
| MGP.L | Medica Group PLC | 0.04 | 0.55 | 0.54 |
| SBI.L | Sourcebio International PLC | 0.18 | 1.06 | 0.93 |
| TLY.L | Totally PLC | 9.03 | -1.91 | -0.24 |
| TTALO.HE | Terveystalo Oyj | 0.4 | 0.67 | 0.51 |
| V3V.DE | Vita 34 AG | 0.29 | 0.13 | 0.11 |
| VOX.WA | Voxel SA | 0.08 | 0.51 | 0.49 |
| ENZ | Enzo Biochem Inc | 0.01 | 1.9 | 1.88 |
| Low | High | |
| Unlevered beta | 0.5 | 0.63 |
| Relevered beta | 0.91 | 1 |
| Adjusted relevered beta | 0.94 | 1 |
GHP.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 GHP.ST:
cost_of_equity (6.70%) = risk_free_rate (0.85%) + equity_risk_premium (5.70%) * adjusted_beta (0.94) + 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.