NILS.ST WACC - Weighted Average Cost of Capital

The WACC of Nilsson Special Vehicles AB (publ) (NILS.ST) is 11.3%.

The Cost of Equity of Nilsson Special Vehicles AB (publ) (NILS.ST) is 8.90%.

The Cost of Debt of Nilsson Special Vehicles AB (publ) (NILS.ST) is 17.45%.

	Range	Selected
Cost of equity	6.40% - 11.40%	8.90%
Tax rate	20.60% - 20.90%	20.75%
Cost of debt	7.00% - 27.90%	17.45%
WACC	6.0% - 16.7%	11.3%

WACC

NILS.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.76	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	11.40%

Tax rate	20.60%	20.90%
Debt/Equity ratio	1	1
Cost of debt	7.00%	27.90%

After-tax WACC	6.0%	16.7%


Selected WACC	11.3%

NILS.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 NILS.ST:

cost_of_equity (8.90%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.76) + 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.