KAR.ST
Karnov Group AB (publ)
Price:  
90.00 
SEK
Volume:  
27,069.00
Sweden | Interactive Media & Services
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KAR.ST WACC - Weighted Average Cost of Capital

The WACC of Karnov Group AB (publ) (KAR.ST) is 5.7%.

The Cost of Equity of Karnov Group AB (publ) (KAR.ST) is 6.20%.
The Cost of Debt of Karnov Group AB (publ) (KAR.ST) is 5.00%.

Range Selected
Cost of equity 5.10% - 7.30% 6.20%
Tax rate 13.10% - 17.60% 15.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.9% - 6.5% 5.7%
WACC

KAR.ST WACC calculation

Category Low High
Long-term bond rate 2.5% 3.0%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.51 0.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 7.30%
Tax rate 13.10% 17.60%
Debt/Equity ratio 0.3 0.3
Cost of debt 5.00% 5.00%
After-tax WACC 4.9% 6.5%
Selected WACC 5.7%

KAR.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 KAR.ST:

cost_of_equity (6.20%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.