HOVD.ST WACC - Weighted Average Cost of Capital
The WACC of Hovding Sverige AB (publ) (HOVD.ST) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.3% - 9.1% | 7.7% |
| Tax rate | 21.4% - 21.6% | 21.5% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.9% - 7.3% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.3% | 2.8% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.84 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 9.1% |
| Tax rate | 21.4% | 21.6% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.9% | 7.3% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HOVD.ST | Hovding Sverige AB (publ) | 0.96 | 1.02 | 0.58 |
| ALCES.PA | Cesar SA | 26.3 | -0.79 | -0.04 |
| ALCYB.PA | Cybergun SA | 3.02 | -2.04 | -0.6 |
| ALPDX.PA | Piscines Desjoyaux SA | 0.32 | 0.43 | 0.35 |
| HRN.L | Hornby PLC | 0.72 | -0.54 | -0.34 |
| MNC.WA | Mennica Polska SA | 0.15 | 0.28 | 0.25 |
| TND.L | Tandem Group PLC | 0.59 | 0.28 | 0.19 |
| ULC.DE | United Labels AG | 0.74 | 0.24 | 0.15 |
| WHH.WA | Werth Holz SA | 1.06 | 0.13 | 0.07 |
| BBIG | Vinco Ventures Inc | 37741.03 | -9.52 | 0 |
| JMIH | Jupiter Marine International Holdings Inc | 81.91 | 38.48 | 0.59 |
| Low | High | |
| Unlevered beta | 0.07 | 0.19 |
| Relevered beta | 0.76 | 1.01 |
| Adjusted relevered beta | 0.84 | 1.01 |
HOVD.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 HOVD.ST:
cost_of_equity (7.70%) = risk_free_rate (2.55%) + equity_risk_premium (5.20%) * adjusted_beta (0.84) + 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.