NICO.ST WACC - Weighted Average Cost of Capital
The WACC of Nicoccino Holding AB (publ) (NICO.ST) is 5.8%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.7% | 5.8% |
| Tax rate | 20.6% - 20.9% | 20.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 6.6% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.38 | 0.44 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 4.9% | 6.7% |
| Tax rate | 20.6% | 20.9% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 6.6% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NICO.ST | Nicoccino Holding AB (publ) | 0.03 | -1.29 | -1.25 |
| BIE.MI | Bioera SpA | 12.98 | -0.02 | 0 |
| ENV.MI | Enervit SpA | 0.15 | 0.11 | 0.09 |
| HRP.WA | Harper Hygienics SA | 3.66 | 0.3 | 0.08 |
| MIR.WA | Miraculum SA | 0.55 | 0.39 | 0.27 |
| MPH.WA | Master Pharm SA | 0.05 | 0.35 | 0.34 |
| MSON B.ST | Midsona AB | 0.46 | 0.06 | 0.04 |
| NATTO.OL | Nattopharma ASA | 0.02 | 1.22 | 1.2 |
| PHR.WA | Pharmena SA | 0.19 | 0.38 | 0.33 |
| SIS.L | Science in Sport PLC | 0.19 | 0.06 | 0.06 |
| Low | High | |
| Unlevered beta | 0.07 | 0.17 |
| Relevered beta | 0.07 | 0.16 |
| Adjusted relevered beta | 0.38 | 0.44 |
NICO.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 NICO.ST:
cost_of_equity (5.80%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.38) + 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.