OASM.ST
Oasmia Pharmaceutical AB
Price:  
1.69 
Oasmia Pharmaceutical
Volume:  
1,600,730
Sweden | Biotechnology

OASM.ST WACC - Weighted Average Cost of Capital

The WACC of Oasmia Pharmaceutical AB (OASM.ST) is 7.3%.

The Cost of Equity of Oasmia Pharmaceutical AB (OASM.ST) is 7.35%.
The Cost of Debt of Oasmia Pharmaceutical AB (OASM.ST) is 7%.

RangeSelected
Cost of equity5.2% - 9.5%7.35%
Tax rate0.0% - 7.8%3.9%
Cost of debt7.0% - 7.0%7%
WACC5.3% - 9.3%7.3%
WACC

OASM.ST WACC calculation

CategoryLowHigh
Long-term bond rate0.6%1.1%
Equity market risk premium5.2%6.2%
Adjusted beta0.490.94
Additional risk adjustments2.0%2.5%
Cost of equity5.2%9.5%
Tax rate0.0%7.8%
Debt/Equity ratio
0.070.07
Cost of debt7.0%7.0%
After-tax WACC5.3%9.3%
Selected WACC7.3%

OASM.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 OASM.ST:

cost_of_equity (7.35%) = risk_free_rate (0.85%) + equity_risk_premium (5.70%) * adjusted_beta (0.49) + 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.