RVRC.ST WACC - Weighted Average Cost of Capital

The WACC of RVRC Holding AB (RVRC.ST) is 7.5%.

The Cost of Equity of RVRC Holding AB (RVRC.ST) is 7.45%.

The Cost of Debt of RVRC Holding AB (RVRC.ST) is 10.70%.

	Range	Selected
Cost of equity	6.20% - 8.70%	7.45%
Tax rate	20.70% - 20.80%	20.75%
Cost of debt	4.00% - 17.40%	10.70%
WACC	6.2% - 8.7%	7.5%

WACC

RVRC.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.73	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	8.70%

Tax rate	20.70%	20.80%
Debt/Equity ratio	0	0
Cost of debt	4.00%	17.40%

After-tax WACC	6.2%	8.7%


Selected WACC	7.5%

RVRC.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 RVRC.ST:

cost_of_equity (7.45%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.73) + 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.