INTRUM.ST WACC - Weighted Average Cost of Capital

The WACC of Intrum AB (INTRUM.ST) is 8.7%.

The Cost of Equity of Intrum AB (INTRUM.ST) is 13.15%.

The Cost of Debt of Intrum AB (INTRUM.ST) is 13.40%.

	Range	Selected
Cost of equity	9.90% - 16.40%	13.15%
Tax rate	28.80% - 38.70%	33.75%
Cost of debt	4.30% - 22.50%	13.40%
WACC	3.5% - 14.0%	8.7%

WACC

INTRUM.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.45	2.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	16.40%

Tax rate	28.80%	38.70%
Debt/Equity ratio	13.83	13.83
Cost of debt	4.30%	22.50%

After-tax WACC	3.5%	14.0%


Selected WACC	8.7%

INTRUM.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 INTRUM.ST:

cost_of_equity (13.15%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (1.45) + 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.