SANION.ST
Saniona AB
Price:  
8.43 
SEK
Volume:  
251,722.00
Denmark | Biotechnology
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SANION.ST WACC - Weighted Average Cost of Capital

The WACC of Saniona AB (SANION.ST) is 8.4%.

The Cost of Equity of Saniona AB (SANION.ST) is 8.45%.
The Cost of Debt of Saniona AB (SANION.ST) is 9.30%.

Range Selected
Cost of equity 6.60% - 10.30% 8.45%
Tax rate 6.10% - 8.40% 7.25%
Cost of debt 4.00% - 14.60% 9.30%
WACC 6.6% - 10.3% 8.4%
WACC

SANION.ST WACC calculation

Category Low High
Long-term bond rate 2.5% 3.0%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.81 1.11
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 10.30%
Tax rate 6.10% 8.40%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 14.60%
After-tax WACC 6.6% 10.3%
Selected WACC 8.4%

SANION.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 SANION.ST:

cost_of_equity (8.45%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.81) + 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.