PLUN.ST
ProstaLund AB
Price:  
0.91 
SEK
Volume:  
37,623.00
Sweden | Health Care Equipment & Supplies
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PLUN.ST WACC - Weighted Average Cost of Capital

The WACC of ProstaLund AB (PLUN.ST) is 4.9%.

The Cost of Equity of ProstaLund AB (PLUN.ST) is 5.05%.
The Cost of Debt of ProstaLund AB (PLUN.ST) is 5.00%.

Range Selected
Cost of equity 3.50% - 6.60% 5.05%
Tax rate 20.60% - 20.90% 20.75%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.5% - 6.3% 4.9%
WACC

PLUN.ST WACC calculation

Category Low High
Long-term bond rate 2.5% 3.0%
Equity market risk premium 5.1% 6.1%
Adjusted beta -0.01 0.35
Additional risk adjustments 1.0% 1.5%
Cost of equity 3.50% 6.60%
Tax rate 20.60% 20.90%
Debt/Equity ratio 0.15 0.15
Cost of debt 5.00% 5.00%
After-tax WACC 3.5% 6.3%
Selected WACC 4.9%

PLUN.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 PLUN.ST:

cost_of_equity (5.05%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (-0.01) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.