INFREA.ST
Infrea AB
Price:  
16.45 
SEK
Volume:  
6,041
Sweden | Industrial Conglomerates

INFREA.ST WACC - Weighted Average Cost of Capital

The WACC of Infrea AB (INFREA.ST) is 5.9%.

The Cost of Equity of Infrea AB (INFREA.ST) is 7.35%.
The Cost of Debt of Infrea AB (INFREA.ST) is 5%.

RangeSelected
Cost of equity5.4% - 9.3%7.35%
Tax rate14.5% - 22.7%18.6%
Cost of debt5.0% - 5.0%5%
WACC4.9% - 7.0%5.9%
WACC

INFREA.ST WACC calculation

CategoryLowHigh
Long-term bond rate2.5%3.0%
Equity market risk premium5.1%6.1%
Adjusted beta0.470.86
Additional risk adjustments0.5%1.0%
Cost of equity5.4%9.3%
Tax rate14.5%22.7%
Debt/Equity ratio
0.750.75
Cost of debt5.0%5.0%
After-tax WACC4.9%7.0%
Selected WACC5.9%

INFREA.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 INFREA.ST:

cost_of_equity (7.35%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.