NOTE.ST WACC - Weighted Average Cost of Capital
The WACC of Note AB (publ) (NOTE.ST) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.1% | 6.95% |
| Tax rate | 18.1% - 18.5% | 18.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.6% - 7.6% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.64 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.1% |
| Tax rate | 18.1% | 18.5% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.6% | 7.6% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NOTE.ST | Note AB (publ) | 0.13 | 0.4 | 0.36 |
| CICN.SW | Cicor Technologies Ltd | 0.2 | 0.7 | 0.6 |
| DAM.DE | Data Modul AG Produktion und Vertrieb von Elektronischen Systemen | 0.2 | 0.01 | 0.01 |
| GHH.L | Gooch & Housego PLC | 0.27 | 0.84 | 0.69 |
| HMX1R.RG | HansaMatrix AS | 0.74 | 0.17 | 0.11 |
| ICP1V.HE | Incap Oyj | 0.11 | 0.58 | 0.54 |
| KIT.OL | Kitron ASA | 0.01 | 0.46 | 0.45 |
| MLNOV.PA | Novatech Industries SA | 0.88 | 0.4 | 0.23 |
| NEWAY.AS | Neways Electronics International NV | 0.46 | 0.95 | 0.69 |
| PPIX.L | ProPhotonix Ltd | 0.08 | 1.56 | 1.46 |
| Low | High | |
| Unlevered beta | 0.42 | 0.56 |
| Relevered beta | 0.46 | 0.63 |
| Adjusted relevered beta | 0.64 | 0.75 |
NOTE.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 NOTE.ST:
cost_of_equity (6.95%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.64) + 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.