PREC.ST
Precise Biometrics AB
Price:  
4.11 
SEK
Volume:  
79,419.00
Sweden | Electronic Equipment, Instruments & Components
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PREC.ST WACC - Weighted Average Cost of Capital

The WACC of Precise Biometrics AB (PREC.ST) is 5.7%.

The Cost of Equity of Precise Biometrics AB (PREC.ST) is 5.80%.
The Cost of Debt of Precise Biometrics AB (PREC.ST) is 5.00%.

Range Selected
Cost of equity 4.90% - 6.70% 5.80%
Tax rate 2.90% - 4.50% 3.70%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.9% - 6.6% 5.7%
WACC

PREC.ST WACC calculation

Category Low High
Long-term bond rate 2.5% 3.0%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.37 0.44
Additional risk adjustments 0.5% 1.0%
Cost of equity 4.90% 6.70%
Tax rate 2.90% 4.50%
Debt/Equity ratio 0.05 0.05
Cost of debt 5.00% 5.00%
After-tax WACC 4.9% 6.6%
Selected WACC 5.7%

PREC.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 PREC.ST:

cost_of_equity (5.80%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.