SCOUT.ST WACC - Weighted Average Cost of Capital
The WACC of Scout Gaming Group AB (SCOUT.ST) is 5.2%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.9% | 6.55% |
| Tax rate | 20.6% - 20.9% | 20.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 5.9% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.52 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.9% |
| Tax rate | 20.6% | 20.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 5.9% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SCOUT.ST | Scout Gaming Group AB | 0.83 | -0.53 | -0.32 |
| ASPIRE.ST | Aspire Global PLC | 0.03 | 0.55 | 0.53 |
| BETCO.ST | Better Collective A/S | 0.41 | 0.46 | 0.34 |
| CENTR.AT | Centric Holdings SA | 0.27 | 0.61 | 0.5 |
| GIG.OL | Gaming Innovation Group Inc | 0.3 | 0.26 | 0.21 |
| LEO.ST | LeoVegas AB (publ) | 0.14 | 0.57 | 0.51 |
| QXT.L | Quixant PLC | 0.02 | -0.45 | -0.44 |
| RAKE.ST | Raketech Group Holding PLC | 0.21 | 0.36 | 0.31 |
| SFCA.PA | Societe Francaise de Casinos SA | 0.41 | 0.09 | 0.07 |
| ELRA | Elray Resources Inc | 3.59 | -0.81 | -0.21 |
| WPFH | World Poker Fund Holdings Inc | 31429.06 | 0.28 | 0 |
| Low | High | |
| Unlevered beta | 0.07 | 0.31 |
| Relevered beta | 0.28 | 0.58 |
| Adjusted relevered beta | 0.52 | 0.72 |
SCOUT.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 SCOUT.ST:
cost_of_equity (6.55%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.52) + 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.