KLED.ST WACC - Weighted Average Cost of Capital
The WACC of Kungsleden AB (KLED.ST) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.7% | 7.25% |
| Tax rate | 21.3% - 22.0% | 21.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.7% - 6.5% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 0.6% | 1.1% |
| Equity market risk premium | 5.2% | 6.2% |
| Adjusted beta | 0.98 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.7% |
| Tax rate | 21.3% | 22.0% |
| Debt/Equity ratio | 0.72 | 0.72 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.7% | 6.5% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KLED.ST | Kungsleden AB | 0.72 | 0.91 | 0.58 |
| GRI.L | Grainger PLC | 0.99 | 0.84 | 0.47 |
| JDAN.CO | Jeudan A/S | 1.93 | 0.03 | 0.01 |
| KMCP.OL | Kmc Properties ASA | 124.21 | 30.1 | 0.31 |
| MOBN.SW | Mobimo Holding AG | 0.72 | 0.38 | 0.24 |
| NP3.ST | NP3 Fastigheter AB | 0.79 | 0.38 | 0.23 |
| NYF.ST | Nyfosa AB | 1.2 | 0.27 | 0.14 |
| OLT.OL | Olav Thon Eiendomsselskap ASA | 0.86 | 0.34 | 0.21 |
| SRE.L | Sirius Real Estate Ltd | 0.59 | 0.96 | 0.65 |
| TLG.DE | TLG Immobilien AG | 0.32 | 1.24 | 0.99 |
| Low | High | |
| Unlevered beta | 0.24 | 0.37 |
| Relevered beta | 0.97 | 1.19 |
| Adjusted relevered beta | 0.98 | 1.13 |
KLED.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 KLED.ST:
cost_of_equity (7.25%) = risk_free_rate (0.85%) + equity_risk_premium (5.70%) * adjusted_beta (0.98) + 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.