The WACC of Moment Group AB (MOMENT.ST) is 10.2%.
| Range | Selected | |
| Cost of equity | 4.80% - 9.10% | 6.95% |
| Tax rate | 9.20% - 13.20% | 11.20% |
| Cost of debt | 5.70% - 19.50% | 12.60% |
| WACC | 5.1% - 15.3% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.06 | 0.59 |
| Additional risk adjustments | 2.0% | 2.5% |
| Cost of equity | 4.80% | 9.10% |
| Tax rate | 9.20% | 13.20% |
| Debt/Equity ratio | 3.79 | 3.79 |
| Cost of debt | 5.70% | 19.50% |
| After-tax WACC | 5.1% | 15.3% |
| Selected WACC | 10.2% | |
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 MOMENT.ST:
cost_of_equity (6.95%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.06) + risk_adjustments (2.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.