HOYLU.ST WACC - Weighted Average Cost of Capital
The WACC of Hoylu AB (HOYLU.ST) is 7.2%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.4% | 6.25% |
| Tax rate | 0.1% - 0.1% | 0.1% |
| Cost of debt | 7.0% - 9.5% | 8.25% |
| WACC | 6.1% - 8.4% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.32 | 0.47 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 5.1% | 7.4% |
| Tax rate | 0.1% | 0.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 9.5% |
| After-tax WACC | 6.1% | 8.4% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HOYLU.ST | Hoylu AB | 0.97 | 0.25 | 0.12 |
| ARC.L | Arcontech Group PLC | 0.05 | -0.45 | -0.43 |
| B24.WA | Brand 24 SA | 0.04 | 0.07 | 0.07 |
| DISH.L | BigDish PLC | 2.68 | 0.13 | 0.04 |
| GOJXN.AS | GeoJunxion NV | 0.14 | -0.09 | -0.08 |
| HEEROS.HE | Heeros Oyj | 0.02 | -0.73 | -0.71 |
| M4B.WA | M4B SA | 0.14 | 0.19 | 0.17 |
| MNO.L | Maestrano Group PLC | 0.01 | 0.5 | 0.5 |
| SMART.IS | Smartiks Yazilim AS | 0.04 | 0.97 | 0.93 |
| VRE.L | VR Education Holdings PLC | 0 | 0.18 | 0.18 |
| XMR.ST | XMReality AB (publ) | 0.98 | -0.12 | -0.06 |
| Low | High | |
| Unlevered beta | 0.04 | 0.12 |
| Relevered beta | -0.01 | 0.21 |
| Adjusted relevered beta | 0.32 | 0.47 |
HOYLU.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 HOYLU.ST:
cost_of_equity (6.25%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.32) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.