INDT.ST WACC - Weighted Average Cost of Capital
The WACC of Indutrade AB (INDT.ST) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.4% - 9.0% | 7.2% |
| Tax rate | 22.1% - 22.2% | 22.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.2% - 8.4% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.57 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 9.0% |
| Tax rate | 22.1% | 22.2% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.2% | 8.4% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INDT.ST | Indutrade AB | 0.11 | 1.06 | 0.97 |
| BEGR.ST | BE Group AB (publ) | 1.5 | 0.39 | 0.18 |
| BEIJ B.ST | Beijer Ref AB (publ) | 0.17 | 1.11 | 0.98 |
| BOSN.SW | Bossard Holding AG | 0.26 | 0.8 | 0.67 |
| BUFAB.ST | Bufab AB (publ) | 0.21 | 1.11 | 0.95 |
| DNA2.L | Doric Nimrod Air Two Ltd | 0.4 | 0.15 | 0.12 |
| HWDN.L | Howden Joinery Group PLC | 0.15 | 1.27 | 1.14 |
| STF.WA | Stalprofil SA | 1.5 | 0.38 | 0.18 |
| TEQ.ST | Teqnion AB | 0.18 | -0.06 | -0.05 |
| THEP.PA | Thermador Groupe SA | 0.05 | 0.45 | 0.44 |
| Low | High | |
| Unlevered beta | 0.33 | 0.78 |
| Relevered beta | 0.36 | 0.85 |
| Adjusted relevered beta | 0.57 | 0.9 |
INDT.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 INDT.ST:
cost_of_equity (7.20%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.57) + 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.