SCST.ST WACC - Weighted Average Cost of Capital

The WACC of Scandi Standard AB (publ) (SCST.ST) is 5.7%.

The Cost of Equity of Scandi Standard AB (publ) (SCST.ST) is 6.35%.

The Cost of Debt of Scandi Standard AB (publ) (SCST.ST) is 4.85%.

	Range	Selected
Cost of equity	5.30% - 7.40%	6.35%
Tax rate	21.60% - 23.70%	22.65%
Cost of debt	4.30% - 5.40%	4.85%
WACC	4.9% - 6.6%	5.7%

WACC

SCST.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.55	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	7.40%

Tax rate	21.60%	23.70%
Debt/Equity ratio	0.32	0.32
Cost of debt	4.30%	5.40%

After-tax WACC	4.9%	6.6%


Selected WACC	5.7%

SCST.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 SCST.ST:

cost_of_equity (6.35%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.55) + 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.