GPG.ST
Genova Property Group AB
Price:  
42 
SEK
Volume:  
2,613
Sweden | Real Estate Management & Development

GPG.ST WACC - Weighted Average Cost of Capital

The WACC of Genova Property Group AB (GPG.ST) is 6.2%.

The Cost of Equity of Genova Property Group AB (GPG.ST) is 7%.
The Cost of Debt of Genova Property Group AB (GPG.ST) is 7.5%.

RangeSelected
Cost of equity5.1% - 8.9%7%
Tax rate17.9% - 22.0%19.95%
Cost of debt4.0% - 11.0%7.5%
WACC3.7% - 8.7%6.2%
WACC

GPG.ST WACC calculation

CategoryLowHigh
Long-term bond rate2.5%3.0%
Equity market risk premium5.1%6.1%
Adjusted beta0.520.88
Additional risk adjustments0.0%0.5%
Cost of equity5.1%8.9%
Tax rate17.9%22.0%
Debt/Equity ratio
3.413.41
Cost of debt4.0%11.0%
After-tax WACC3.7%8.7%
Selected WACC6.2%

GPG.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 GPG.ST:

cost_of_equity (7.00%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.52) + 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.