SECARE.ST
Swedencare AB (publ)
Price:  
40.00 
SEK
Volume:  
150,547.00
Sweden | Pharmaceuticals
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SECARE.ST WACC - Weighted Average Cost of Capital

The WACC of Swedencare AB (publ) (SECARE.ST) is 5.8%.

The Cost of Equity of Swedencare AB (publ) (SECARE.ST) is 6.35%.
The Cost of Debt of Swedencare AB (publ) (SECARE.ST) is 4.35%.

Range Selected
Cost of equity 5.10% - 7.60% 6.35%
Tax rate 17.20% - 21.90% 19.55%
Cost of debt 4.00% - 4.70% 4.35%
WACC 4.8% - 6.9% 5.8%
WACC

SECARE.ST WACC calculation

Category Low High
Long-term bond rate 2.5% 3.0%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.51 0.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 7.60%
Tax rate 17.20% 21.90%
Debt/Equity ratio 0.23 0.23
Cost of debt 4.00% 4.70%
After-tax WACC 4.8% 6.9%
Selected WACC 5.8%

SECARE.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 SECARE.ST:

cost_of_equity (6.35%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.